Document ID: USCG-2016-0748-0048
Agency: uscg
Document Type: Rule
Title: Marine Casualty Reporting Property Damage Thresholds
Posted Date: 2018-03-19T04:00Z

[Federal Register Volume 83, Number 53 (Monday, March 19, 2018)]
[Rules and Regulations]
[Pages 11889-11902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05467]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Part 4

[Docket No. USCG-2016-0748]
RIN 1625-AC33

Marine Casualty Reporting Property Damage Thresholds

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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SUMMARY: The Coast Guard is amending the monetary property damage 
threshold amounts for reporting a marine casualty and for reporting a 
type of marine casualty called a ``serious marine incident.'' The 
original regulations that set these dollar threshold amounts were 
written in the 1980s and have not been updated since that time. Because 
the monetary thresholds for reporting have not kept pace with 
inflation, vessel owners and operators have been required to report 
relatively minor casualties. Additionally, the original regulations 
require mandatory drug and alcohol testing following a serious marine 
incident. As a result, vessel owners and operators are conducting 
testing for casualties that are less significant than those intended to 
be captured by the original regulations. Updating the original 
regulations will reduce the burden on vessel owners and operators, and 
will also reduce the amount of Coast Guard resources expended to 
investigate these incidents.

DATES: This final rule is effective April 18, 2018.

FOR FURTHER INFORMATION CONTACT: For information about this document, 
call or email LCDR Baxter B. Smoak, CG-INV, Coast Guard; telephone 202-
372-1223, email [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents for Preamble

I. Abbreviations
II. Background, Basis, and Purpose
III. Regulatory History
IV. Discussion of Final Rule
V. Discussion of Comments and Changes
    A. Dollar Threshold Amounts for Reporting Marine Casualties
    B. Dollar Threshold Amounts for Reporting SMIs
    C. Periodic Adjustments of the Threshold Amounts for Reporting 
Marine Casualties and SMIs
    D. Loss of Marine Casualty Data
    E. Amending the Dollar Amount Thresholds for Outer Continental 
Shelf Casualty Reporting in Title 33 of the CFR
    F. Use of the CPI-U to Determine Reporting Threshold Amounts
    G. Nonsubstantive Changes to Reflect Updated CG-2692, Report of 
Marine Casualty, Commercial Diving Casualty, or OCS-related Casualty
VI. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates Reform Act
    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 Bureau of Labor Statistics
CFR Code of Federal Regulations
COI Collection of Information
CPI-U Consumer Price Index for All Urban Consumers
DHS Department of Homeland Security
MISLE Marine Information for Safety and Law Enforcement
NPRM Notice of Proposed Rulemaking
OCMI Officer in Charge, Marine Inspection
OCS Outer Continental Shelf
OMB Office of Management and Budget
PVA Passenger Vessel Association
RA Regulatory analysis
SMI Serious marine incident
SNPRM Supplemental notice of proposed rulemaking.
U.S.C. United States Code
Sec.  Section symbol

II. Background, Basis, and Purpose

    Pursuant to 46 U.S.C. 6101, the Coast Guard is required to 
prescribe regulations on marine casualty reporting and the manner of 
reporting. Based on this authority, we developed regulations in part 4 
of title 46 of the Code of Federal Regulations (CFR) that included, 
among other criteria, monetary property damage threshold amounts for 
reporting a ``serious marine incident'' \1\ (SMI) and for reporting a 
marine casualty.\2\ The original regulations setting these property 
damage threshold amounts were developed in the 1980s, and they have not 
been updated since that time. With this final rule, we update the 
dollar threshold amounts for property damage

[[Page 11890]]

in 46 CFR 4.03-2(a)(3) and 4.05-1(a)(7) to account for inflation.
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    \1\ 46 CFR 4.03-2.
    \2\ 46 CFR 4.05-1.
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    As described in greater detail in the notice of proposed rulemaking 
(NPRM), there is Coast Guard and stakeholder consensus that the 1980s 
property damage monetary threshold amounts listed in 46 CFR 4.03-2 and 
4.05-1 have not kept pace with inflation.\3\ Over time, this has 
resulted in the reporting of a greater number of casualties involving 
relatively minor property damage. It was never 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 to eliminate the reporting of 
insignificant property damage incidents.
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    \3\ 82 FR 7755, page 7756.
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    Additionally, because the regulations require mandatory drug and 
alcohol testing following an SMI, current regulations require chemical 
testing of crewmembers for casualties that reach a minimum threshold of 
$100,000 in property damage. Because of cost increases caused by 
inflation, however, casualties that result in property damage between 
$100,000 and $200,000 are no longer representative of a ``serious'' 
incident. The lack of inflation updates to our marine casualty 
regulations has resulted in an additional administrative and financial 
burden on vessel owners and operators, as well as on Coast Guard 
resources used to investigate these incidents.

III. Regulatory History

    On January 23, 2017, the Coast Guard published an NPRM with request 
for comments. No public meeting was requested, and none was held.

IV. Discussion of Final Rule

    This final rule changes the reportable marine casualty property 
damage threshold amount in 46 CFR 4.05-1(a)(7) from $25,000 to $75,000. 
In the NPRM, we proposed to make this threshold $72,000, but chose 
$75,000 for reasons explained in the next section of this preamble. 
This final rule also changes the SMI property damage threshold in 46 
CFR 4.03-2(a)(3) from $100,000 to $200,000. This change is the same as 
that proposed in the NPRM.
    With the dollar amount thresholds updated to account for inflation, 
we expect there will be a decrease in the number of commercial vessel 
casualties reported to the Coast Guard. The updates in this final rule 
will also likely decrease the number of casualties that fall within the 
definition of an SMI, and thereby reduce the number of chemical tests 
administered following an SMI that results in $100,000.01 to $200,000 
worth of property damage. However, mandatory chemical testing will 
still be required if the property damage meets the updated dollar 
threshold amount (in excess of $200,000) established in this final 
rule. Our intent in setting a dollar amount threshold in our marine 
casualty reporting regulation and within the definition of ``serious 
marine incident'' was, and remains, to ensure that the Coast Guard is 
aware of those incidents that could be indicative of more serious 
problems that may be averted in the future with timely intervention.
    We expect that this final rule will result in an estimated annual 
cost savings to industry of $40,809 due to a reduction in the hourly 
burden of reporting and recordkeeping for both marine casualties and 
SMIs, and an estimated annual cost savings of $4,751 for chemical 
testing for marine casualties designated as SMIs. This final rule will 
also result in cost savings to the Coast Guard by reducing the hourly 
burden costs to investigate marine casualties, as well as the costs 
associated with processing marine casualty forms. As a result, the 
maritime industry and Coast Guard resources will be able to focus their 
efforts on higher consequence incidents.
    Finally, this final rule makes several nonsubstantive changes 
throughout 46 CFR part 4 to account for Office of Management and Budget 
(OMB)-approved updates to forms that the maritime industry uses to 
report on marine casualties and SMIs. The Coast Guard provides further 
detail of these non-substantive changes below in Part V.G, Discussion 
of Comments and Changes.

V. Discussion of Comments and Changes

    We received 45 public comments. The comments were from individuals 
representing 25 private companies and 6 trade associations, and 1 
anonymous source. Two of these private companies had two individuals 
submit comments on their behalf, and 11 individuals representing one of 
the other private companies submitted separate letters. Additionally, 
one of the trade associations submitted two identical letters from the 
same individual. We reviewed and took into consideration all 45 
comments. The majority of commenters agreed with the NPRM that the 
current dollar thresholds for reporting marine casualties and SMIs are 
outdated and should be increased. Some commenters agreed with each of 
the increased dollar threshold amounts proposed in the NPRM. Other 
commenters recommended increasing the proposed dollar threshold amount 
for reporting a marine casualty; of this group, most also recommended 
increasing the proposed dollar threshold amount for reporting an SMI. 
Still others recommended including a means to periodically adjust or 
revise the dollar threshold amounts to make sure they continue to stay 
current. One commenter recommended that the Coast Guard include within 
the docket ``examples of the casualties which will no longer be 
reported'' as a result of the increase in the dollar threshold amount 
for property damage. Another commenter suggested that the proposal to 
increase the dollar threshold amounts for reporting casualties and SMIs 
be extended to the Outer Continental Shelf (OCS) regulations in 33 CFR 
part 146, so that the reporting threshold amounts in both CFR titles 
will be ``standardized.'' Finally, one commenter suggested that our 
method of calculating the inflationary adjustment using the Consumer 
Price Index for All Urban Consumers (CPI-U) yielded outdated figures, 
and that there may be other reference indices that would produce more 
accurate results.
    We have grouped these comments into the following categories:
     Dollar Threshold Amounts for Reporting Marine Casualties;
     Dollar Threshold Amounts for Reporting SMIs;
     Periodic Adjustments of the Threshold Amounts for 
Reporting Marine Casualties and SMIs;
     Loss of Marine Casualty Data;
     Amending the Dollar Amount Thresholds for Outer 
Continental Shelf Casualty Reporting in Title 33 of the CFR; and
     Use of the CPI-U to Determine Reporting Threshold Amounts.
    A detailed discussion of these comments and our responses follows.

A. Dollar Threshold Amounts for Reporting Marine Casualties

    Four commenters agreed with the increased dollar threshold amounts 
exactly as proposed in the NPRM. Of the four commenters, three had 
additional comments unrelated to the specific dollar threshold amounts. 
Those comments are addressed in the following discussions and 
responses.
    One commenter recommended increasing the proposed dollar threshold 
amount of $72,000 for a marine casualty to a ``more memorable figure of 
$75,000 or $100,000.''
    Coast Guard Response: We agree with the commenters that $75,000 and 
$100,000 represent figures that are

[[Page 11891]]

easier to remember than $72,000. However, we do not agree with changing 
the property damage threshold to $100,000. As we explained in the NPRM, 
the Coast Guard, in arriving at the proposed threshold amount of 
$72,000, calculated the inflation adjustment factor using the CPI-U. 
Changing the threshold amount to $100,000 would not be consistent with 
our intent to update the reporting threshold based on the rate of 
inflation experienced since implementation of the original rule. 
Changing the dollar threshold to $75,000, however, is consistent with 
that intent and, as the commenter noted, is an easier dollar figure to 
remember. Additionally, based on our casualty data, we believe that the 
difference in reporting data between $72,000 and $75,000 will be 
negligible and, for the reasons explained in the Regulatory Analysis 
(RA) section of this final rule (Section VI), the affected population 
of this rule remains unchanged from the NPRM. In this final rule, 
therefore, we have changed the marine casualty reporting threshold for 
property damage to $75,000.

B. Dollar Threshold Amounts for Reporting SMIs

    Thirty-six commenters recommended increasing the proposed dollar 
threshold amount for reporting an SMI to $400,000, citing suggestions 
from the Passenger Vessel Association (PVA). In support of its 
recommendation for the Coast Guard to change the dollar amount of an 
SMI from the proposed $200,000 to $400,000, the PVA explains that the 
1:4 ratio between the existing dollar amount threshold for marine 
casualty reporting ($25,000) and the existing dollar amount threshold 
for a ``serious marine incident'' ($100,000) should be maintained under 
the final rule.
    Coast Guard Response: We do not agree with the 1:4 ratio suggested 
by the PVA and their members. While the original thresholds did have a 
1:4 ratio, this relationship was not by design, nor was it our 
intention to tie the threshold numbers together in this manner or to 
suggest that a 1:4 ratio is optimal and should be maintained. Changing 
the property damage threshold amount to $400,000 for an SMI, as 
recommended by the commenters and the PVA, would not be consistent with 
our intent to update the threshold amount based on the rate of 
inflation experienced since implementation of the original rule.

C. Periodic Adjustments of the Threshold Amounts for Reporting Marine 
Casualties and SMIs

    Thirty-seven commenters recommended including in the final rule a 
provision for periodically adjusting both threshold amounts to account 
for inflation, so that the Coast Guard will not be required to initiate 
future rulemakings to update the threshold amounts. Of these, one 
commenter pointed out that the Coast Guard was ``using the same CPI-U 
numbers to calculate and revise the damage thresholds that they 
currently employ for their civil penalty adjustments.'' Therefore, the 
commenter suggested, we should include in the final rule a provision to 
``revise [the dollar threshold amounts for both a marine casualty and 
an SMI] using the same rate increase schedule as those for civil 
penalty updates.''
    Coast Guard Response: We do not plan to establish automatic, 
periodic inflation adjustments to these property damage threshold 
amounts because the cost increase due to annual inflation may be too 
insignificant to warrant an adjustment every year. Frequent adjustments 
could also lead to confusion in what is to be reported. Additionally, 
the maritime industry may also be burdened with updating training and 
operational materials. We recognize, however, that these dollar amount 
thresholds should be reviewed more frequently than in the past to 
account for annual inflation. To that end, we will incorporate a 5-year 
evaluation period in our internal Mission Management System audits to 
ensure that the Coast Guard reviews the appropriateness of these dollar 
threshold amounts on a regular, recurring basis.

D. Loss of Marine Casualty Data

    One anonymous commenter did not express support for or opposition 
to the NPRM, but was concerned that an increase in the dollar threshold 
amounts would mean a loss of data for those casualties whose property 
damage amounts fall below the proposed thresholds. For those 
casualties, the commenter believed the Coast Guard would not have the 
necessary information to identify problems that may need attention. The 
commenter recommended that the Coast Guard ``provide supplemental 
information to the docket which provides examples of the casualties 
which will no longer be reported,'' and stated that this information 
should be available to the public ``because it was the data the Coast 
Guard used to determine that the current thresholds are not adequate 
and would clearly convey what type of data would no longer need to be 
reported.''
    Coast Guard Response: We understand and appreciate the commenter's 
concerns. However, we are changing the reporting thresholds only as 
they relate to property damage. We feel that the various types of 
reportable casualties detailed in 46 CFR 4.05-1 ensure we are made 
aware of those incidents that could indicate more serious problems and 
that may be averted in the future with timely intervention. These 
include groundings, bridge allisions, loss of propulsion or steering, 
certain equipment failures, incidents resulting in significant harm to 
the environment, fire or flooding that adversely affects the vessel's 
seaworthiness or fitness for service, injuries beyond first aid, and 
loss of life--regardless of property damage cost. Nevertheless, we 
understand that, under this final rule, there will be casualties that 
involve property damage alone that will no longer be reported to the 
Coast Guard. An example of such a casualty would be if a vessel allides 
with a pier, and the resulting initial estimated property damage to the 
vessel and pier structure is any amount between $25,000.01 and $75,000. 
Assuming no pollution, deaths, injuries, or other reportable criteria 
is met, this casualty would no longer be a reportable marine casualty 
under this final rule. In reviewing historical data from the Coast 
Guard's Marine Information for Safety and Law Enforcement (MISLE) 
database, we are confident that the casualties reported that involve 
only property damage under $75,000 are relatively minor in nature when 
compared to all other reportable marine casualties. A specific example 
that epitomizes this occurred aboard a moored foreign containership. In 
this reportable marine casualty, a container being loaded by a 
longshoreman using a shore-side crane struck the forward mast of the 
vessel, resulting in over $66,000 in damage. Under this final rule, a 
relatively minor incident like this will no longer be reported to the 
Coast Guard.

E. Amending the Dollar Amount Thresholds for Outer Continental Shelf 
Casualty Reporting in Title 33 of the CFR

    One commenter, speaking on behalf of the International Association 
of Drilling Contractors, recommended that the increased dollar 
threshold amount for reporting a marine casualty, as proposed in the 
NPRM, also be applied to OCS facilities under 33 CFR part 146. If the 
Coast Guard makes the proposed changes only in 46 CFR part 4, and not

[[Page 11892]]

also in 33 CFR part 146, the commenter stated that the Coast Guard 
would ``appear to be penalizing'' OCS facilities, which would continue 
to be required to report under the original dollar threshold amount of 
$25,000. The commenter referred to a ``second related rulemaking (USCG-
2013-1057) in progress that proposes to broaden the regulatory 
requirements for reporting marine casualties on the U.S. OCS,'' and 
suggested that the Coast Guard review the marine casualty dollar 
threshold amounts in both 33 and 46 CFR ``with a view towards 
standardization.''
    Coast Guard Response: The commenter is correct that, because this 
final rule is limited to vessels (see 46 CFR 4.03-1 and 4.05-1), it 
does not affect the reporting threshold for OCS facilities. Changing 
the $25,000 casualty damage threshold amount applicable to OCS 
facilities is not within the scope of the rule we proposed, and we 
think it is important to finalize the changes for vessels rather than 
delay them in order to propose changes for OCS facilities. However, we 
acknowledge the validity of the commenter's concern, and we will 
consider amending the threshold reporting amount applicable to OCS 
facilities in a future rulemaking.

F. Use of the CPI-U To Determine Reporting Threshold Amounts

    One commenter who was generally supportive of the NPRM stated that 
the method we used to calculate inflationary adjustment by comparing 
the average CPI-U for the base years with the average CPI-U for 2015 
yielded outdated information. The commenter pointed out that the U.S. 
Bureau of Labor Statistics (BLS) inflation calculator, available online 
at the BLS website, allows users to compare base year values to values 
for 2017. Therefore, the commenter contends, the threshold amount for 
reporting a marine casualty as proposed in the NPRM is ``already 
outdated by two years.'' The commenter recommended raising the 
threshold amounts for a marine casualty and an SMI to $100,000 and 
$400,000, respectively.
    Coast Guard Response: As stated previously, we agree that since the 
NPRM was published, more recent CPI-U data is available. However, we 
disagree with using the CPI-U BLS calculator to update to 2017. When 
using the BLS calculator to update to 2017, the calculator updates to 
the last available month of 2017 data. The CPI-U could have an unusual 
increase or decrease in 1 month that is not representative of the 
overall trend in the CPI-U over the full year. We take an average of 
the 12 months of CPI-U data for the latest full year of data to better 
represent the overall trend in CPI-U. We disagree with using 2017 data 
because it would provide an incomplete year of data. The last full year 
of CPI-U data available at the time of analysis was 2016. We have 
updated this final rule in a way that encompasses the 2016 CPI-U data.
    Thirty-six commenters, citing suggestions from the PVA, recommended 
increasing the threshold for reporting marine casualties to $100,000, 
stating that the proposed figure of $72,000 ``is already outdated 
because the (Coast Guard's) calculation used 2015 as the year inputted 
into the CPI-U BLS calculator.'' The PVA and many of these commenters 
also expressed the belief that the CPI-U may not be the right index to 
use and that the $100,000 threshold reflects real, but non-CPI cost, 
``inflation'' because of overtime and seasonality of repairs.
    Coast Guard Response: While we agree that more recent CPI-U data is 
available since the publication of the NPRM, we decline to use 2017 
data when computing the inflation adjustment factor using the BLS CPI-U 
calculator because doing so would provide an incomplete year of data. 
The last full year of CPI-U data is 2016, and using 2016 data instead 
of 2015 data does not result in an inflation-adjusted amount larger 
than the $75,000 figure already discussed. Specifically, if we 
calculate the inflation adjustment by comparing the average CPI-U for 
the base year 1980 (82.408) with the average CPI-U for 2016 (240.007), 
we find a resultant inflation adjustment factor of 1.912.\4\ This 
inflation adjustment factor represents how much inflation has occurred 
since 1980. We multiply this inflation adjustment factor of 1.912 by 
the current threshold of $25,000 to calculate the raw inflation 
increment of $47,800. We then add this raw inflation to the original 
penalty of $25,000, which results in a threshold of $72,800. When 
rounding to the nearest thousand, this results in a revised threshold 
of $73,000. Accordingly, for the reasons mentioned above and in 
response to public comment, we are rounding to the nearest $5,000 to 
attain a more memorable dollar amount of $75,000.
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    \4\ CPI Detailed Report, Data for December 2016, Table 24. 
http://www.bls.gov/cpi/cpid1512.pdf.
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    The PVA states in its comment that it was not able to identify a 
single index that best fits the maritime industry. We agree that there 
is not a source that best fits the maritime industry. Because of this, 
we use the CPI-U to adjust the monetary property thresholds. The CPI is 
the most widely used and accepted index produced by the BLS to measure 
the average change over time in prices paid by urban consumers for a 
market basket of goods and services. Among other uses, the CPI serves 
as an economic indicator of the effectiveness of government economic 
policy, as a means of adjusting income payments, such as Social 
Security and military benefits, and automatic wage increases in the 
private sector, and as a means of adjusting Federal income tax 
brackets.\5\ The specific CPI the Coast Guard uses is the unadjusted 
All Items CPI-U. The CPI-U is the ``broadest and most comprehensive 
CPI'' and, using unadjusted data, is more appropriate for this purpose 
because seasonally adjusted CPI data is subject to revision for up to 5 
years after their original release, making such data difficult to use 
for adjustment purposes.\6\ The CPI-U represents about 89 percent of 
the total U.S. population and is based on the expenditures of all 
families in urban areas,\7\ which includes almost all residents of 
urban or metropolitan areas, such as professionals, the self-employed, 
the poor, the unemployed, and retired persons, as well as urban wage 
earners and clerical workers.
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    \5\ BLS, Chapter 17: The Consumer Price Index, page 5, https://www.bls.gov/opub/hom/pdf/homch17.pdf.
    \6\ BLS, Consumer Price Index Frequently Asked Questions, 
https://www.bls.gov/cpi/questions-and-answers.htm#Question_13.
    \7\ BLS, How To Use the Consumer Price Index for Escalation, 
https://www.bls.gov/cpi/factsheets/escalation.htm.
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G. Nonsubstantive Changes To Reflect Updated CG-2692, Report of Marine 
Casualty, Commercial Diving Casualty, or OCS-Related Casualty

    Finally, after publication of the NPRM, we realized that we failed 
to include within the NPRM's proposed changes updates to the CG-2692 
forms that OMB approved on September 29, 2016. OMB's approval was 
preceded by two Federal Register notices in which the Coast Guard 
sought public comment to these changes.\8\ The changes to Form CG-2692 
involved revising its title and moving certain sections to two new 
addendum forms. In this final rule, therefore, we are making 
nonsubstantive changes throughout 46 CFR part 4 to reflect the recently 
approved updates to the CG-2692 forms.\9\ Because the changes to the 
CG-2692 forms are non-substantive, and a separate opportunity to 
comment on the forms was provided through the OMB approval process that 
is now complete, the Coast Guard finds

[[Page 11893]]

that good cause exists under 5 U.S.C. 553(b)(B) to bypass prior notice 
and comment on the nonsubstantive changes to 46 CFR part 4 in this 
final rule.
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    \8\ 80 FR 64430 and 81 FR 5774.
    \9\ This final rule makes nonsubstantive changes to sections 
4.05-10, 4.05-12, 4.06-3, 4.06-5, 4.06-30, and 4.06-60.
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VI. 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 (including potential economic, environmental, 
public health and safety effects, distributive impacts, and equity). 
Executive Order 13563 emphasizes the importance of quantifying both 
costs and benefits, of reducing costs, of harmonizing rules, and of 
promoting flexibility. Executive Order 13771 (``Reducing Regulation and 
Controlling Regulatory Costs''), directs agencies to reduce regulation 
and control regulatory costs and provides that ``for every one new 
regulation issued, at least two prior regulations be identified for 
elimination, and that the cost of planned regulations be prudently 
managed and controlled through a budgeting process.''
    The Office of Management and Budget (OMB) has not designated this 
rule a significant regulatory action under section 3(f) of Executive 
Order 12866. Accordingly, OMB has not reviewed it. OMB considers this 
rule to be an Executive Order 13771 deregulatory action. See OMB's 
Memorandum ``Guidance Implementing Executive Order 13771, Titled 
`Reducing Regulation and Controlling Regulatory Costs' '' (April 5, 
2017). An RA follows.
    In the NPRM, we proposed to revise the dollar threshold amount for 
reporting a marine casualty from $25,000 to $72,000. After considering 
public comments, we decided to increase the dollar threshold amount to 
$75,000. This RA incorporates the new threshold amount. We reviewed the 
incident investigation data from the Coast Guard's MISLE database used 
to estimate the affected population, and found from 2012 through 2014, 
there were a total of four marine casualty reports where the only 
outcome was property damage of $72,000.01 through $75,000. After 
accounting for rounding, these four additional marine casualty reports 
over the three year period were not substantial enough to change the 
approximately 5.3 percent of the 5,967 (or 316) fewer marine casualty 
reports we expect will be required per year after implementation of 
this final rule. Therefore, the affected population of this final rule 
remains unchanged from that of the NPRM.
    We also updated the wage rates using BLS 2016 data. Table 1 
summarizes the changes from the NPRM to this final rule, and the 
resultant impact on the RA.

                               Table 1--Summary of Changes From NPRM to Final Rule
----------------------------------------------------------------------------------------------------------------
       Element of the analysis                   NPRM                  Final rule         Resulting impact on RA
----------------------------------------------------------------------------------------------------------------
Replace reportable marine casualty     Replaced $25,000 with    Replaced $25,000 with    No impact.
 threshold.                             $72,000.                 $75,000.
Water transportation worker wage rate  $47.60, using May 2015   $50.84, using May 2016   Increased industry
                                        and 2016 1st quarter     and 2016 4th quarter     costs and resulting
                                        BLS data.                BLS data.                industry benefits.
----------------------------------------------------------------------------------------------------------------

    This RA provides an evaluation of the economic impacts associated 
with this final rule. Under this final rule, the Coast Guard is 
updating the reportable marine casualty dollar threshold in Sec.  4.05-
1(a)(7) of 46 CFR from $25,000 to $75,000, and the reportable SMI 
dollar threshold in Sec.  4.03-2(a)(3) of 46 CFR from $100,000 to 
$200,000, to account for inflation, as discussed in Section IV of this 
final rule. Table 2 provides a summary of the affected population, 
costs, and benefits after implementation of this final rule.

            Table 2--Summary of the Impacts of the Final Rule
------------------------------------------------------------------------
             Category                              Summary
------------------------------------------------------------------------
Applicability.....................  Replace the reportable marine
                                     casualty dollar threshold of
                                     $25,000 with $75,000.
                                    Replace the SMI dollar threshold of
                                     $100,000 with $200,000.
Affected Population...............  Owners, agents, masters, operators,
                                     or persons in charge involved in a
                                     marine casualty and crewmembers who
                                     are required to undergo chemical
                                     testing.
                                    Annual average of 316 vessel owners,
                                     operators, or their representatives
                                     reporting a marine casualty, 21
                                     marine employers reporting an SMI
                                     and submitting chemical testing
                                     results to the Coast Guard, and an
                                     average of 32 vessel crewmembers
                                     will no longer be required to
                                     complete chemical testing.
Costs.............................  No quantitative costs.
Benefits (Cost Savings)...........  $45,560 annualized and $319,994 10-
                                     year present value monetized
                                     industry benefits (cost savings)
                                     (7% discount rate).
                                    $637,688 annualized and $4,478,854
                                     10-year present value monetized
                                     government benefits (cost savings)
                                     (7% discount rate).
                                    Total of industry and government
                                     benefits: $683,248 annualized and
                                     $4,798,848 10-year present value
                                     monetized combined benefits (cost
                                     savings) (7% discount rate).
------------------------------------------------------------------------

Affected Population
    This final rule affects the owners, agents, masters, operators, or 
persons in charge of a commercial vessel who, pursuant to 46 CFR 4.05-
1, are required to notify the Coast Guard whenever a vessel is involved 
in a marine casualty and whenever crewmembers, pursuant to 46 CFR 4.06-
3, are required to complete chemical testing following an SMI. 
Specifically, the regulations in this final rule affect those 
individuals who would have completed the necessary forms (CG-2692 
series) to report a marine casualty where the only outcome

[[Page 11894]]

was property damage of $25,000.01 through $75,000, or an SMI with 
property damage of $100,000.01 through $200,000 (CG-2692 series, 
supplemented with an appended SMI written report (CG-2692B)).\10\
---------------------------------------------------------------------------

    \10\ ``Report of Required Chemical Drug and Alcohol Testing 
Following a Serious Marine Incident.'' See, 46 CFR 4.05-10.
---------------------------------------------------------------------------

    We used incident investigation data from the Coast Guard's MISLE 
database from 2012 through 2014 \11\ to estimate the average number of 
vessel crewmembers affected by this final rule. From 2012 through 2014, 
we found there was an average of 5,967 reports of a marine casualty per 
year, with one individual per vessel, who we assume to be a vessel 
crewmember, completing each report. An average of 271, or 4.5 percent 
of the annual 5,967 marine casualty reports, involved an SMI.
---------------------------------------------------------------------------

    \11\ This 3-year time period was used to be consistent with the 
existing Collection of Information, entitled ``Report of Marine 
Casualty & Chemical Testing of Commercial Vessel Personnel,'' which 
has OMB Control Number 1625-0001. Furthermore, as it often takes 
years to close the cases, 2014 is the most recent complete year of 
closed cases.
---------------------------------------------------------------------------

    Of the 5,967 marine casualty reports, 5.3 percent were for a 
reportable marine casualty where the only outcome was property damage 
of $25,000.01 through $75,000. Therefore, we expect that an average of 
316 fewer reports of marine casualties will be required per year (5,967 
reports x 5.3 percent, rounded). Vessel owners and operators benefit 
from a reduction in the time burden associated with a crewmember no 
longer having to prepare and submit the required marine casualty 
reporting paperwork.
    Of the 271 casualty reports that involved an SMI, 7.9 percent were 
cases in which the sole outcome of the SMI was property damage of 
$100,000.01 through $200,000. Based on that annual average, the 
revisions in this final rule will result in a reduction of 21 SMI 
written reports (CG-2692B) per year due to the change to the monetary 
threshold amount for an SMI involving property damage (271 reports x 
7.9 percent, rounded). Because property damage of $100,000.01 through 
$200,000 exceeds the threshold for a reportable marine casualty, the 
forms for a marine casualty report (CG-2692 series) will still need to 
be completed under this final rule. However, marine employers will no 
longer be required to complete the additional paperwork required for an 
SMI written report (CG-2692B). Consequently, marine employers benefit 
from a reduction in the time burden associated with an SMI written 
report (CG-2692B), as well as cost savings associated with chemical 
testing.
Benefit or Cost Savings to Industry
    The benefit or cost savings to industry is the difference between 
the current baseline cost to industry and the cost to industry after 
implementation of this final rule.
Current Reporting Cost to Industry for CG-2692 and CG-2692B
    To estimate the benefit to industry, we first estimate the current 
cost to industry. The cost to industry includes costs for reporting and 
recordkeeping for a reportable marine casualty and the costs for 
chemical testing for marine casualties designated as SMIs. The 
reporting and recordkeeping costs for marine casualties include the 
time to complete the forms (CG-2692 series) for a marine casualty, the 
time for 10 percent of the forms to be internally reviewed before 
submission, and the time to complete the additional SMI written report 
(CG-2692B) pursuant to 46 CFR 4.06-60(a) when a marine casualty is 
designated as an SMI. The time estimates and wage rates for reporting 
and recordkeeping are taken from the existing Collection of Information 
(COI), entitled ``Marine Casualty Information & Periodic Chemical Drug 
and Alcohol Testing of Commercial Vessel Personnel,'' which has OMB 
Control Number 1625-0001.\12\ We use the same time estimates and wage 
rates in this analysis to maintain consistency and to capture the 
changes resulting from this final rule.
---------------------------------------------------------------------------

    \12\ Existing Collection of Information, ``Marine Casualty 
Information & Periodic Chemical Drug and Alcohol Testing of 
Commercial Vessel Personnel'', OMB Control Number 1625-0001, Docket 
Number USCG-2015-0910, can be found at https://www.federalregister.gov/documents/2015/10/23/2015-27019/information-collection-request-to-office-of-management-and-budget-omb-control-number-1625-0001.
---------------------------------------------------------------------------

    An average of 5,967 marine casualty reports are submitted annually 
by vessel owners or operators. For each reportable marine casualty, we 
estimated in the existing COI that it takes 1 hour for a vessel 
crewmember to complete the necessary forms (CG-2692 series). We 
estimated in the existing COI that the position of vessel crewmember is 
analogous to a government employee at the grade level of a GS-03. The 
fully loaded wage rate for a GS-03 is $26 per hour, according to 
Commandant Instruction 7310.1P, ``Reimbursable Standard Rates.'' \13\ 
We use this version to maintain consistency with the existing COI 1625-
0001. The annual baseline cost to complete the current 5,967 CG-2692 
series forms is $155,142 (5,967 marine casualty reports x $26).
---------------------------------------------------------------------------

    \13\ Out of Government Rate for GS-03. Hourly Rates for 
Personnel ($), Enclosure (2) to Commandant Instruction 7310.1P.
---------------------------------------------------------------------------

    We estimate that it takes, on average, 1 hour to complete the CG-
2692 series of forms. However, we received public comments in 2011 on 
the existing COI number 1625-0001 that stated that completing Form CG-
2692 takes more than 1 hour, and one commenter stated that it can take 
up to 8 to 12 hours to complete the form.\14\ The reason for this 
difference is that some entities choose to have the forms reviewed by 
shoreside personnel, such as an attorney, prior to submission to the 
Coast Guard. We adjusted our burden estimate to account for this 
additional layer of review. To account for this additional time, 10 
percent of the forms submitted have 10 hours of additional burden. The 
additional time reflects internal review by individuals employed by the 
vessel owner or operator in addition to the vessel crewmember who 
completes the form. The additional reviewers may be shoreside 
representatives, port engineers, and attorneys, among others. We 
estimate that the wage rate for this added review is done by personnel 
analogous to a government employee at the grade level of a GS-14. The 
fully loaded wage rate for a GS-14 is $101 per hour, per Commandant 
Instruction 7310.1P. The total annual cost of this additional time is 
$602,970 (597 marine casualty reports x 10 additional burden hours x 
$101).
---------------------------------------------------------------------------

    \14\ Docket ID: USCG-2011-0710. Comments can be found at https://www.regulations.gov/docket?D=USCG-2011-0710.
---------------------------------------------------------------------------

    When a marine casualty is designated as an SMI, the marine employer 
must also complete a ``Report of Mandatory Chemical Testing Following A 
Serious Marine Incident Involving Vessels in Commercial Service'' (Form 
CG-2692B). (See 46 CFR 4.06-60.) We estimate that it takes 0.5 hours 
for a marine employer analogous to a government employee at the grade 
level of a GS-03 to complete this form. The annual cost to complete CG-
2692B is $3,523 (271 SMI reports x 0.5 hours x $26 per hour wage rate).
    Table 3 shows a summary of the current industry costs for reporting 
and recordkeeping.

[[Page 11895]]

                     Table 3--Current Annual Industry Costs for Reporting and Recordkeeping
----------------------------------------------------------------------------------------------------------------
                                   Crewmembers/    Burden hours     Annual hour                     Annual cost
           Requirement               responses     per response       burden         Wage rate        burden
----------------------------------------------------------------------------------------------------------------
Written report of marine                   5,967             1.0           5,967             $26        $155,142
 casualty.......................
Additional Burden for 10% of                 597            10.0           5,970             101         602,970
 Respondents....................
SMI written report..............             271             0.5             136              26           3,523
                                 -------------------------------------------------------------------------------
    Totals......................  ..............  ..............          12,073  ..............         761,635
----------------------------------------------------------------------------------------------------------------

    As mentioned earlier in this final rule, when a marine casualty is 
designated as an SMI, the crewmembers involved are required to take a 
chemical test pursuant to 46 CFR 4.06-3. The marine employer incurs 
costs for the actual costs of the chemical test and the time it takes 
for a crewmember to take the chemical test. The actual cost of the 
chemical test includes the costs of the chemical test collection kits, 
collector fees, Coast Guard alcohol-testing swabs, and overnight 
mailing. These costs can vary, but on average, the actual chemical test 
costs approximately $100 per test.\15\ The number of vessel crewmembers 
required to take a chemical test can vary depending on the 
circumstances of the SMI. We analyzed the casualty reports that 
involved an SMI from MISLE data and found an average of 1.5 crewmembers 
per SMI were required to take a chemical test. We used an estimate of 
1.5 crewmembers to estimate the costs of chemical testing to account 
for the variation in crewmembers involved in SMIs. With an average of 
271 SMIs per year, the current annual cost for the actual chemical 
tests is $40,650 (271 SMIs x average of 1.5 crewmembers x $100 per 
test).
---------------------------------------------------------------------------

    \15\ Most marine employers use a consortium that simplifies and 
reduces the costs per test and also assists in managing a company's 
drug-testing program. There are variables associated with the cost 
of testing, as costs can vary depending on the number of personnel 
included in a plan and the type of testing plan adopted by a 
particular company. Based on discussions with industry and Coast 
Guard medical testing, contract data that are not publically 
available, we estimated testing costs of $79 and $114. We are, 
therefore, using an average cost of $100 for this analysis [($79 + 
$114)/2, rounded].
---------------------------------------------------------------------------

    In addition to the cost of the chemical tests, there is a cost 
associated with the time it takes a vessel crewmember to complete the 
chemical test. We estimate that it takes 1 hour for a crewmember to 
complete the chemical test.\16\ We obtained the wage rate of the 
crewmember from BLS, using Occupational Series 53-5000, Water 
Transportation Workers (May 2016). The BLS reports that the mean hourly 
wage rate for a water transportation worker is $33.45.\17\ To account 
for employee benefits, we use a load factor of 1.52, which we 
calculated from 2016 4th quarter BLS data.\18\ The loaded wage for a 
crewmember is estimated at $50.84 ($33.45 wage rate x 1.52 load 
factor). The cost of the time for a crewmember to take the chemical 
test is $20,666 (271 SMIs x average of 1.5 crewmembers x 1 hour burden 
x $50.84 wage rate). Therefore, the current annual cost to industry for 
chemical testing is $61,316 (see table 4). Adding the costs for 
chemical testing of $61,316 to the cost for reporting and recordkeeping 
of $761,635 (see table 3), brings the current total annual cost to 
industry to $822,951.
---------------------------------------------------------------------------

    \16\ Hourly estimate is from Coast Guard subject matter experts, 
and takes into account that these are not planned tests, but instead 
are emergent tests--required as a result of accidents--that must be 
taken no later than 32 hours after the incident.
    \17\ Mean wage, https://www.bls.gov/oes/2016/may/naics3_483000.htm. Because the crewmembers taking the chemical 
testing could be anyone from a junior deck officer up to a Master/
Captain/Chief Engineer, we use the broader Water Transportation 
Worker (53-5000).
    \18\ Employer Costs for Employee Compensation provides 
information on the employer compensation and can be found in Table 9 
at https://www.bls.gov/news.release/archives/ecec_03172017.pdf. 
http://data.bls.gov/data/. The loaded wage factor is equal to the 
total compensation of $28.15 divided by the wages and salary of 
$18.53. Values for the total compensation, wages, and salary are for 
all private industry workers in the transportation and material 
moving occupations, 2016 4th quarter.

                                               Table 4--Current Annual Industry Costs for Chemical Testing
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Average                                                          Total cost  of
                           SMIs per year                               crewmembers    Cost of testing   Hours to take      Wage rate         testing
                                                                     tested per  SMI     procedures          test                           procedures
--------------------------------------------------------------------------------------------------------------------------------------------------------
271................................................................             1.5             $100                1           $50.84          $61,316
--------------------------------------------------------------------------------------------------------------------------------------------------------

Total Reporting Costs to Industry After Implementation of the Final 
Rule

    Increasing the dollar threshold amount for a reportable marine 
casualty involving property damage, as well as the dollar threshold 
amount for property damage within the definition of a ``serious marine 
incident,'' reduces the number of marine casualty responses by 5.3 
percent, and the number of SMIs by 7.9 percent, annually. The burden 
hours per response remain the same, but we estimate that the total 
number of responses decreases to 5,651 for marine casualties and 250 
for SMIs, resulting in 316 fewer reported marine casualties and 21 
fewer SMIs. The following sections replicate the calculation of marine 
casualty reporting and chemical testing, but reflect the reduced number 
of reports and testing under the revised thresholds.
    For each reportable marine casualty, we estimate that it takes 1 
hour for a vessel crewmember to complete all parts of the necessary 
forms at a wage rate of $26. We estimate that the cost to complete the 
reduced number of marine casualty forms is $146,926 (5,651 marine 
casualty reports x $26).
    In addition to the time needed to complete the marine casualty 
forms, some of the forms require additional processing time. The 
additional processing time reflects internal review by individuals 
employed by the vessel owner or operator, in addition to the time 
needed by the vessel crewmember who completes the form. The additional 
reviewers may be shoreside representatives, port engineers, or 
attorneys, among others. To account for

[[Page 11896]]

this time, 10 percent \19\ of the forms submitted (565 forms) have 10 
hours of additional burden, and the wage rate for this added review 
will be done by personnel analogous to a government employee at the 
grade level of a GS-14. We estimate that the total cost of this 
additional time after the implementation of this final rule is $570,650 
(565 marine casualty reports x 10 additional burden hours x $101).
---------------------------------------------------------------------------

    \19\ Docket ID: USCG-2011-0710, https://www.regulations.gov/docket?D=USCG-2011-0710.
---------------------------------------------------------------------------

    As mentioned earlier in this final rule, when a marine casualty is 
designated as an SMI, the marine employer must complete an SMI written 
report (CG-2692B). We estimate that it takes 0.5 hours for a marine 
employer analogous to a government employee at a grade level of a GS-03 
to complete this form.\20\ We estimate that the cost to complete the 
additional forms for an SMI after implementation of this final rule is 
$3,250 (250 SMI reports x 0.5 hours x $26 per hour wage rate).
---------------------------------------------------------------------------

    \20\ The wage rate for a marine employer to complete Form CG-
2692B and to report chemical test results to the OCMI is taken from 
existing COI number 1625-0001.
---------------------------------------------------------------------------

    Table 5 shows a summary of the industry costs after implementation 
of this final rule.

        Table 5--Annual Industry Costs for Reporting and Recordkeeping With Revised Reporting Thresholds
----------------------------------------------------------------------------------------------------------------
                                   Crewmembers/    Burden hours     Annual hour                     Annual cost
           Requirement               responses     per response       burden         Wage rate        burden
----------------------------------------------------------------------------------------------------------------
Written report of marine                   5,651             1.0           5,651             $26        $146,926
 casualty.......................
Additional Burden for 10% of                 565            10.0           5,650             101         570,650
 Respondents....................
SMI written report..............             250             0.5             125              26           3,250
                                 -------------------------------------------------------------------------------
    Totals......................  ..............  ..............          11,426  ..............         720,826
----------------------------------------------------------------------------------------------------------------

    The marine employer incurs the actual costs of the chemical test 
and the wage burden it takes for a crewmember to complete the chemical 
test. On average, each chemical test costs approximately $100. We use 
an estimate of 1.5 crewmembers to estimate the costs of chemical 
testing to account for the variation in crewmembers involved in SMIs. 
With an average of 250 SMIs per year, the annual cost after 
implementation of this final rule for the actual chemical tests is 
$37,500 (250 SMIs x average of 1.5 crewmembers x $100 per test).
    In addition to the cost of the chemical tests, there is a cost 
associated with the time it takes a vessel crewmember to complete the 
chemical test. We estimate that it takes 1 hour for a crewmember to 
complete the chemical test at a loaded wage rate of $50.84 per hour. We 
estimate that the cost of the time for a crewmember to take the 
chemical test under this final rule is $19,065 (250 SMIs x average of 
1.5 crewmembers x 1 hour burden x $50.84 wage rate). Therefore, the 
annual cost to industry for chemical testing after implementation of 
this final rule is $56,565 (see table 6). Adding the costs for chemical 
testing of $56,565 to the cost for reporting and recordkeeping of 
$720,826 (see table 5) brings the estimated total annual cost to 
industry to $777,391.

                               Table 6--Annual Industry Costs for Chemical Testing After Implementation of the Final Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         Average                                                          Total cost of
                           SMIs per year                               crewmembers    Cost of testing   Hours to take      Wage rate         testing
                                                                      tested per SMI     procedures          test                           procedures
--------------------------------------------------------------------------------------------------------------------------------------------------------
250................................................................             1.5             $100                1           $50.84          $56,565
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The annual burden of reporting marine casualties and SMIs under the 
current dollar amount thresholds is $822,951. The annual burden of 
reporting under the new thresholds is $777,391. Therefore, we estimate 
that the annual cost savings or benefit to industry after 
implementation of this final rule is $45,560. Table 7 shows a summary 
of the annual current industry cost burden, the annual industry cost 
burden after implementation of the final rule, and the annual cost 
savings resulting from implementation of this final rule.

      Table 7--Total Annual Cost Savings to Industry by Requirement After Implementation of the Final Rule
----------------------------------------------------------------------------------------------------------------
                                                                                                Annual industry
                                                           Current annual    Annual industry      cost savings
                      Requirement                          industry cost    cost burden after        after
                                                               burden       implementation of  implementation of
                                                                                final rule         final rule
----------------------------------------------------------------------------------------------------------------
Written report of marine casualty......................           $155,142           $146,926             $8,216
Additional burden for 10% of respondents...............            602,970            570,650             32,320
SMI written report.....................................              3,523              3,250                273
Testing procedures.....................................             61,316             56,565              4,751
                                                        --------------------------------------------------------
    Total..............................................            822,951            777,391             45,560
----------------------------------------------------------------------------------------------------------------

[[Page 11897]]

    The total 10-year undiscounted industry cost savings of this final 
rule is $455,600. Table 8 shows the 10-year estimated discounted cost 
savings to industry to be $319,994, with an annualized cost savings of 
$45,560, using a 7-percent discount rate.

 Table 8--Total Estimated Cost Savings or Industry Benefits of the Final Rule Over a 10-Year Period of Analysis
                                      [Discounted costs at 7 and 3 percent]
----------------------------------------------------------------------------------------------------------------
                                                                       Total             Total, discounted
                              Year                                 undiscounted  -------------------------------
                                                                       costs            7%              3%
----------------------------------------------------------------------------------------------------------------
1...............................................................         $45,560         $42,579         $44,233
2...............................................................          45,560          39,794          42,945
3...............................................................          45,560          37,191          41,694
4...............................................................          45,560          34,758          40,479
5...............................................................          45,560          32,484          39,300
6...............................................................          45,560          30,359          38,156
7...............................................................          45,560          28,372          37,044
8...............................................................          45,560          26,516          35,965
9...............................................................          45,560          24,782          34,918
10..............................................................          45,560          23,160          33,901
                                                                 -----------------------------------------------
    Total.......................................................         455,600         319,994         388,636
                                                                 -----------------------------------------------
        Annualized..............................................  ..............          45,560          45,560
----------------------------------------------------------------------------------------------------------------

Benefits or Cost Savings to Government
    The benefit to the Federal Government is the difference between the 
baseline current cost to the Coast Guard and the cost to the Coast 
Guard after implementation of this final rule.
Current Costs to Government
    We first estimated the current costs to the Coast Guard, which 
include the cost to investigate a marine casualty and the cost of 
processing marine casualty forms. Because an SMI is a type of marine 
casualty, the estimate for the cost of the investigation and the 
processing of the casualty forms includes those incidents that 
constitute an SMI. Reportable marine casualties are investigated by the 
Coast Guard. Some investigations may be more complex than others, 
depending on the incident. The Coast Guard reviewed the CG-741 (Coast 
Guard Office of Shore Forces) Sector Staffing Model to estimate the 
average number of hours per investigation across all incident types. 
The Sector Staffing Model assigns a total hourly effort for the type of 
incident (e.g., allision, grounding, collision) that is matched against 
MISLE data, which then provides the resource needs for each Coast Guard 
Sector. We estimate that, across all types of incidents, these 
investigations take an average of 25 hours for a Lieutenant (LT; O-3) 
to complete. There is an average of 5,967 marine casualty cases per 
year. The fully loaded wage rate for an O-3 is $78 per hour, per 
Commandant Instruction 7310.1P. Table 9 shows the current annual cost 
of investigations to be $11,635,650 (5,967 reportable marine casualties 
x 25 burden hours x $78 wage rate).
    The Coast Guard must process the forms submitted for each 
reportable marine casualty, and currently processes an average of 5,967 
marine casualty reports per year. To maintain consistency and capture 
the changes due to this final rule, the time estimates and wage rates 
for processing the forms are taken from the existing COI 1625-0001. For 
each reportable marine casualty, we estimate that it takes 1 hour by a 
Lieutenant Junior Grade (LTJG; O-2) to process the forms (CG-2692 
series), including auditing at a local field investigation office and 
the entry of pertinent information into Coast Guard's MISLE system. The 
fully loaded wage rate for an O-2 is $68 per hour, per Commandant 
Instruction 7310.1P. Table 9 shows the current annual cost for the 
Coast Guard to process reportable marine casualties to be $405,756 
(5,967 reportable marine casualties x 1 burden hour x $68 wage rate). 
We estimate that the total current annual cost to the Federal 
Government is $12,041,406.

                                    Table 9--Current Annual Government Costs
----------------------------------------------------------------------------------------------------------------
                                    Reportable
          Cost category               marine       Burden hours    Annual hours      Wage rate      Annual cost
                                    casualties     per response
----------------------------------------------------------------------------------------------------------------
Investigation...................           5,967              25         149,175             $78     $11,635,650
Processing marine casualty                 5,967               1           5,967              68         405,756
 reports........................
                                 -------------------------------------------------------------------------------
    Total.......................  ..............  ..............  ..............  ..............      12,041,406
----------------------------------------------------------------------------------------------------------------

    Under this final rule, increasing the dollar amount threshold for 
property damage reduces the number of reportable marine casualties by 
5.3 percent, resulting in 316 fewer reportable marine casualties. The 
burden hours per response for investigations and processing marine 
casualty reports remains the same, but the average number of reportable 
marine casualties decreases to 5,651 per year. We estimate that it 
takes an average of 25 hours for an O-3 to complete and investigate and 
1 hour for an O-2 to process the forms for each reportable marine 
casualty. Table 10 shows the annual cost for the Coast Guard to 
complete investigations under this final

[[Page 11898]]

rule to be $11,019,450 (5,651 reportable marine casualties x 25 hour 
burden x $78). The annual cost to process reportable marine casualties 
after implementation of this final rule is $384,268 (5,651 reportable 
marine casualties x 1 hour burden x $68). We estimate that the total 
annual cost to the Federal Government is $11,403,718 after 
implementation of this final rule.

               Table 10--Estimated Annual Government Costs After Implementation of the Final Rule
----------------------------------------------------------------------------------------------------------------
                                    Reportable
          Cost category               marine       Burden hours    Annual hours      Wage rate      Annual cost
                                    casualties     per response
----------------------------------------------------------------------------------------------------------------
Investigation...................           5,651              25         141,275             $78     $11,019,450
Processing marine casualty                 5,651               1           5,651              68         384,268
 report.........................
                                 -------------------------------------------------------------------------------
    Total.......................  ..............  ..............  ..............  ..............      11,403,718
----------------------------------------------------------------------------------------------------------------

    The current annual cost to the Coast Guard to process marine 
casualty reports is $12,041,406. The annual cost to the Coast Guard 
after implementation of this final rule is $11,403,718. Therefore, the 
annual Federal Government benefit of reducing those reportable marine 
casualties that involve property damage alone is $637,688. This 
reduction, however, does not result in a need for fewer Coast Guard 
investigators, as the existing investigators will be able to focus 
efforts on higher consequence incidents. We estimate the total 
undiscounted cost savings or benefit of this final rule to the Federal 
Government to be $6,376,880 over the 10-year period of analysis. Table 
11 shows the total estimated 10-year discounted cost savings to the 
Federal Government to be $4,478,854, with an annualized cost savings of 
$637,688, using a 7-percent discount rate.

    Table 11--Total Estimated Cost Savings or Government Benefits of the Final Rule Over a 10-Year Period of
                                                    Analysis
                                      [Discounted costs at 7 and 3 percent]
----------------------------------------------------------------------------------------------------------------
                                                                       Total          Total discounted costs
                              Year                                 undiscounted  -------------------------------
                                                                       costs            7%              3%
----------------------------------------------------------------------------------------------------------------
1...............................................................        $637,688        $595,970        $619,115
2...............................................................         637,688         556,981         601,082
3...............................................................         637,688         520,543         583,575
4...............................................................         637,688         486,489         566,578
5...............................................................         637,688         454,663         550,075
6...............................................................         637,688         424,918         534,054
7...............................................................         637,688         397,120         518,499
8...............................................................         637,688         371,140         503,397
9...............................................................         637,688         346,860         488,735
10..............................................................         637,688         324,168         474,500
                                                                 -----------------------------------------------
    Total.......................................................       6,376,880       4,478,854       5,439,608
                                                                 -----------------------------------------------
        Annualized..............................................  ..............         637,688         637,688
----------------------------------------------------------------------------------------------------------------

Total Cost Savings or Benefits of the Final Rule
    Table 12 presents the total estimated benefits or cost savings of 
the final rule using 7- and 3-percent discount rates. We estimate the 
total 10-year (industry and Federal Government) undiscounted cost 
savings of this final rule to be $6,832,480. We estimate the total 10-
year discounted cost savings of this final rule to be $4,798,848, and 
the annualized cost savings to be $683,248, using a 7-percent discount 
rate. Using a perpetual period of analysis, we estimate the total 
annualized cost savings of the final rule is $596,775 in 2016 dollars, 
using a 7 percent discount rate.

     Table 12--Total Estimated Cost Savings or Benefits of the Final Rule Over a 10-Year Period of Analysis
                                    [Discounted benefits at 7 and 3 percent]
----------------------------------------------------------------------------------------------------------------
                                                                       Total             Total, discounted
                              Year                                 undiscounted  -------------------------------
                                                                       costs            7%              3%
----------------------------------------------------------------------------------------------------------------
1...............................................................        $683,248        $638,550        $663,348
2...............................................................         683,248         596,775         644,027
3...............................................................         683,248         557,734         625,269
4...............................................................         683,248         521,247         607,057
5...............................................................         683,248         487,146         589,376
6...............................................................         683,248         455,277         572,209
7...............................................................         683,248         425,493         555,543
8...............................................................         683,248         397,657         539,362

[[Page 11899]]

 
9...............................................................         683,248         371,642         523,653
10..............................................................         683,248         347,329         508,401
                                                                 -----------------------------------------------
    Total.......................................................       6,832,480       4,798,848       5,828,244
                                                                 -----------------------------------------------
        Annualized..............................................  ..............         683,248         683,248
----------------------------------------------------------------------------------------------------------------

B. Small Entities

    Under the Regulatory Flexibility Act, 5 U.S.C. 601-612, we have 
considered whether this final rule has 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.
    This final rule reduces the burden on industry by increasing the 
property damage dollar threshold amount within the definition of 
``SMI'' and for reporting a marine casualty incident. There is no 
effect on any crewmember, owner, or operator of a vessel that does not 
have a reportable marine casualty or serious marine incident. There is 
no effect on any crewmember, owner, or operator of a vessel that has a 
marine casualty with property damage less than or equal to $25,000, or 
an SMI with damage less than or equal to $100,000, as these individuals 
currently do not have to report the casualty and will not have to do so 
under this final rule. There is no effect on any crewmember, owner, or 
operator of a vessel that has a marine casualty with property damage 
greater than $75,000, or an SMI with property damage greater than 
$200,000, as these individuals must currently report such casualties 
and perform chemical testing, and will continue to be required to do so 
under this final rule.
    This final rule does not impose any direct costs on any specific 
industry. The only affected individuals are owners or operators of 
those vessels that would have been involved in a marine casualty where 
the only outcome is property damage of $25,000.01 through $75,000, or 
an SMI where the only outcome is property damage of $100,000.01 through 
$200,000. These entities, which would have incurred costs to report 
these casualties or conduct chemical testing, will be positively 
affected by this final rule because of the increase in the monetized 
threshold amounts.
    As discussed in Section VI.A, Regulatory Planning and Review, of 
this final rule, we expect that an average of approximately 316 fewer 
reports of marine casualties will be required per year, with one 
individual per vessel who we assume to be a vessel crewmember 
completing each report. We assume the 316 marine casualty reports occur 
on 316 separate vessels. It is possible a vessel could have multiple 
incidents in one year, resulting in multiple marine casualty reports, 
but for this analysis we assume the 316 fewer reports are ascribed to 
316 separate vessels. We compared this affected population to the total 
population that could have a marine casualty and be required to prepare 
and submit marine casualty reporting paperwork. We used the MISLE 
Vessel Population data to estimate the total population that will be 
affected. We found that the current total population of vessels that 
could have a marine casualty and be required to submit paperwork is 
209,475.\21\ Therefore, the 316 fewer vessels preparing marine casualty 
paperwork represents 0.15 percent of the total population.
---------------------------------------------------------------------------

    \21\ Population data were pulled from MISLE on 9/28/2016. The 
population is for commercial vessels that are active and in-service. 
The population includes commercial fishing vessels, fish processing 
vessels, freight barges, industrial vessels, mobile offshore 
drilling units, offshore supply vessels, oil recovery vessels, 
passenger (inspected and uninspected) vessels, passenger barges 
(inspected and uninspected), public freights, public tankships/
barges, unclassified public vessels, research vessels, school ships, 
tank barges, tank ships, and towing vessels.
---------------------------------------------------------------------------

    The owners or operators of these 316 vessels benefit from a 
reduction in time burden associated with a crewmember no longer having 
to prepare and submit the required marine casualty reporting paperwork. 
Table 7 in Section VI summarizes the annual cost savings to industry by 
requirement. Table 13 shows these annual cost savings and the vessel 
population we estimated will benefit from each reduction in paperwork 
or testing requirement.

                        Table 13--Maximum Potential Cost Savings per Vessel per Incident
----------------------------------------------------------------------------------------------------------------
                                                                                                      Maximum
                                                                   Total annual       Vessel      potential cost
                           Requirement                             cost savings     population      savings per
                                                                                                      vessel
----------------------------------------------------------------------------------------------------------------
Written report of marine casualty...............................          $8,216             316             $26
Additional Burden for 10% of Respondents........................          32,320              32           1,010
SMI written report..............................................             273              21              13
Testing Procedures..............................................           4,751              21             226
                                                                 -----------------------------------------------
    Totals......................................................          45,560  ..............           1,275
----------------------------------------------------------------------------------------------------------------

[[Page 11900]]

    The total cost savings per vessel for the population of 316 vessels 
benefiting from this final rule will vary depending on the 
requirements. For example, we estimate that 32 of the vessels (10 
percent of population, rounded) will have savings due to a reduction in 
marine casualty reports ($26), and an additional savings for the 
additional burden of reviewing the paperwork ($1,010), in any given 
year. Therefore, a one-time savings will be $1,036 for a vessel with 
only these two requirements. The minimum savings is $26 for a vessel 
that has only the requirement of preparing and submitting the marine 
casualty report. If a vessel would have had to complete all the 
requirements in table 13, the maximum cost savings is $1,275. This 
maximum cost savings will be for a vessel with a marine casualty 
designated as an SMI that completed additional paperwork and reported 
the chemical test results to the Officer in Charge, Marine Inspection 
(OCMI). Therefore, the owner or operator of the 316 vessels affected by 
this final rule would have to have maximum annual revenues of $2,600 to 
$127,500 for this final rule to have a positive impact greater than 1 
percent.
    Therefore, pursuant to section 605(b) of the Regulatory Flexibility 
Act, 5 U.S.C. 605(b), the Coast Guard certifies that this final rule 
will not have a significant economic impact on a substantial number of 
small entities because the increase in the monetized property damage 
threshold amounts reduces the reporting burden on crewmembers or vessel 
owners or operators who complete the marine casualty reports or perform 
the required chemical testing, as described above. This final rule 
reduces the hourly burden associated with marine casualty reporting and 
chemical testing and will not adversely affect small entities as 
defined by the Small Business Administration in 13 CFR 121.201.

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 final rule calls for a 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 collection, a 
description of those who must collect the information, and an estimate 
of the total annual burden follow.
    Under the provisions of the final rule, the Coast Guard will 
collect information from ship personnel who are involved in marine 
casualties resulting in more than $75,000 in property damage, and 
serious marine incidents resulting in more than $200,000 in property 
damage. This requirement amends an existing collection of information 
by effectively reducing the number of instances requiring information 
to be collected under OMB control number 1625-0001.
    Title: Report of Marine Casualty & Chemical Testing of Commercial 
Vessel Personnel.
    OMB Control Number: 1625-0001.
    Summary of the Collection of Information: This final rule requires 
responses such as the preparation of written notification by completing 
Form CG-2692 (series), 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 collection of information will aid the regulated public 
in assuring safe practices.
    Need for Information: These reporting requirements permit the Coast 
Guard to initiate the investigation of marine casualties as required by 
46 U.S.C. 6301, in order to determine the causes of casualties and 
whether existing safety standards are adequate, or whether 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, information 
contained in the report becomes part of the MISLE marine casualty 
database at Coast Guard Headquarters. 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, establish whether additional safety oversight or regulation 
is needed, measure the effectiveness of existing regulatory programs, 
and better focus limited Coast Guard marine safety resources.
    Description of the Respondents: The respondents are those owners, 
agents, masters, operators, or persons in charge that notify the 
nearest Sector Office, Marine Inspection Office, or Coast Guard Group 
Office whenever a vessel is involved in a marine casualty. 
Specifically, this final rule affects those vessel crewmembers and 
marine employers who completed the necessary forms to report a marine 
casualty where the only outcome was property damage of $25,000.01 
through $75,000, or an SMI with property damage of $100,000.01 through 
$200,000 (CG-2692 series).
    Number of Respondents: We estimate that the number of respondents 
affected by this rule will be 5,651 per year. This is a decrease of 316 
respondents from an OMB-approved number of respondents of 5,967 per 
year that complete the CG-2692 series forms (a subset of the total 
respondents in COI 1625-0001). We estimate that 250 of these marine 
casualty respondents fall under the category of SMI respondents and 
would have been required to fill out an additional SMI written report 
(CG-2692B). This is a decrease of 21 respondents per year from 271 
respondents.
    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 of 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

[[Page 11901]]

burden.\22\ When a marine casualty is designated as an SMI, the marine 
employer must also complete an SMI written report (CG-2692B). We 
estimate that it takes 0.5 hours for a respondent to complete an SMI 
written report (CG-2692B)
---------------------------------------------------------------------------

    \22\ The Coast Guard estimates that it takes up to 1 hour to 
complete Form CG-2692 (series). 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. Docket ID: 
USCG-2011-0710, https://www.regulations.gov/docket?D=USCG-2011-0710. 
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 adjusted our 
burden estimate to account for the added review.
---------------------------------------------------------------------------

    Estimate of Total Annual Burden: We estimate that the number of 
responses will decrease by 316 per year. At 1 hour per response, the 
reduced burden for submitting the responses will be 316 hours. In 
addition, 10 percent of these responses would have required additional 
processing of 10 hours per response, for a reduction of an additional 
320 burden hours.\23\ We estimate that 21 of the responses would have 
been designated as an SMI. At 0.5 hours per SMI, the burden will be 
reduced by 11 hours (rounded). Therefore, this final rule decreases the 
total annual burden by 647 hours.\24\
---------------------------------------------------------------------------

    \23\ Due to rounding in the estimates, the current burden for 
the additional review is 5,970 hours. The burden under this final 
rule is 5,650 hours, which is a reduction of 320 hours.
    \24\ The current annual burden in COI 1625-0001 for completing 
the marine casualty forms, the additional processing for some 
respondents, and the time to complete the SMI forms is 12,073 hours. 
The annual burden under this final rule is 11,426 hours, a reduction 
of 647 hours.
---------------------------------------------------------------------------

    This action contains amendments to the existing information 
collection requirements previously approved under OMB Control Number 
1625-0001. As required by 44 U.S.C. 3507(d), we will submit a copy of 
this final rule to OMB for its review of the collection of information.

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 does not have implications for federalism. 
Our analysis follows.
    It is well settled that States may not regulate in categories 
reserved for regulation by the Coast Guard. It is also well settled 
that all of the categories covered in 46 U.S.C. 3306, 3703, 7101, and 
8101 (design, construction, alteration, repair, maintenance, operation, 
equipping, personnel qualification, and manning of vessels), as well as 
the reporting of casualties and any other category in which Congress 
intended the Coast Guard to be the sole source of a vessel's 
obligations, are within the field foreclosed from regulation by the 
States. (See the Supreme Court's decision in United States v. Locke and 
Intertanko v. Locke, 529 U.S. 89, 120 S.Ct. 1135 (2000).) Because the 
States may not regulate within this category, preemption under 
Executive Order 13132 is not an issue.

F. Unfunded Mandates Reform Act

    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. Though this rule will not result in 
such an expenditure, we do discuss the effects of this rule elsewhere 
in this preamble.

G. Taking of Private Property

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

H. Civil Justice Reform

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

I. Protection of Children

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

J. Indian Tribal Governments

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

K. Energy Effects

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

L. Technical Standards

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

M. Environment

    We have analyzed this rule under Department of Homeland Security 
Management Directive 023-01 and Commandant Instruction M16475.lD 
(COMDTINST M164751D), which guide the Coast Guard in complying with the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and 
have concluded 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 where indicated under the 
ADDRESSES section of this preamble. This rule involves regulations 
concerning marine casualties and updates the monetary threshold amounts 
for a reportable marine casualty as well as the definition of an SMI 
relative to property damage. Thus, this action is categorically 
excluded under Section 2.b.2, figure 2-1, paragraph (34)(d) of 
COMDTINST M164751D.

[[Page 11902]]

List of Subjects in 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.

    For the reasons discussed in the preamble, the Coast Guard amends 
46 CFR part 4 as follows:

PART 4--MARINE CASUALTIES AND INVESTIGATIONS

0
1. The authority citation for part 4 continues to read as follows:

    Authority: 33 U.S.C. 1231; 43 U.S.C. 1333; 46 U.S.C. 2103, 
2303a, 2306, 6101, 6301, and 6305; 50 U.S.C. 198; Department of 
Homeland Security Delegation No. 0170.1. Subpart 4.40 issued under 
49 U.S.C. 1903(a)(1)(E).

Sec.  4.03-2   [Amended]

0
2. In Sec.  4.03-2(a)(3), remove the text ``$100,000'' and add, in its 
place, the text ``$200,000''.

Sec.  4.05-1  [Amended]

0
3. In Sec.  4.05-1(a)(7), remove the text ``$25,000'' and add, in its 
place, the text ``$75,000''.

0
4. In Sec.  4.05-10, revise paragraph (a) to read as follows:

Sec.  4.05-10  Written report of marine casualty.

    (a) The owner, agent, master, operator, or person in charge must, 
within 5 days, file a written report of any marine casualty required to 
be reported under Sec.  4.05-1. This written report is in addition to 
the immediate notice required by Sec.  4.05-1. This written report must 
be delivered to a Coast Guard Sector Office or Marine Inspection 
Office. It must be provided on Form CG-2692 (Report of Marine Casualty, 
Commercial Diving Casualty, or OCS-Related Casualty), and supplemented 
as necessary by appended Forms CG-2692A (Barge Addendum), CG-2692B 
(Report of Mandatory Chemical Testing Following a Serious Marine 
Incident Involving Vessels in Commercial Service), CG-2692C (Personnel 
Casualty Addendum), and/or CG-2692D (Involved Persons and Witnesses 
Addendum).
* * * * *

0
5. Revise Sec.  4.05-12(b) introductory text and (d) to read as 
follows:

Sec.  4.05-12  Alcohol or drug use by individuals directly involved in 
casualties.

* * * * *
    (b) In the written report (Forms CG-2692 and CG-2692B) submitted 
for the casualty, the marine employer must include information that--
* * * * *
    (d) If an individual directly involved in a casualty refuses to 
submit to, or cooperate in, the administration of a timely chemical 
test, when directed by a law enforcement officer or by the marine 
employer, this fact must be noted in the official log book, if carried, 
and in the written report (Forms CG-2692 and CG-2692B), and shall be 
admissible as evidence in any administrative proceeding.

Sec.  4.06-3  [Amended]

0
6. In Sec.  4.06-3(a)(3) and (b)(2), remove the text ``form CG-2692B'' 
and add, in its place, the text ``Forms CG-2692 and CG-2692B''.

Sec.  4.06-5   [Amended]

0
7. In Sec.  4.06-5(b), remove the text ``form CG-2692B'' and add, in 
its place, the text ``Forms CG-2692 and CG-2692B''.

Sec.  4.06-30  [Amended]

0
8. In Sec.  4.06-30(b), remove the text ``(Report of Required Chemical 
Drug and Alcohol Testing Following a Serious Marine Incident)'' and 
add, in its place, the text ``(Report of Mandatory Chemical Testing 
Following a Serious Marine Incident Involving Vessels in Commercial 
Service)''.

Sec.  4.06-60  [Amended]

0
9. Amend Sec.  4.06-60 as follows:
0
a. In Sec.  4.06-60(a), remove the text ``(Report of Required Chemical 
Drug and Alcohol Testing Following a Serious Marine Incident)'' and 
add, in its place, the text ``(Report of Mandatory Chemical Testing 
Following a Serious Marine Incident Involving Vessels in Commercial 
Service)''; and
0
b. In Sec.  4.06-60(b), remove the text ``(Report of Marine Casualty, 
Injury or Death)'' and add, in its place, the text ``(Report of Marine 
Casualty, Commercial Diving Casualty, or OCS-Related Casualty)''.

    Dated: March 8, 2018.
Jennifer F. Williams,
Captain, U.S. Coast Guard, Director of Inspections and Compliance.
[FR Doc. 2018-05467 Filed 3-16-18; 8:45 am]
 BILLING CODE 9110-04-P