Document ID: USCG-2016-1012-0006
Agency: uscg
Document Type: Rule
Title: Recreational Boat Flotation Standards- Update of Outboard Engine Weight Test Requirements
Posted Date: 2017-10-27T04:00Z

[Federal Register Volume 82, Number 207 (Friday, October 27, 2017)]
[Rules and Regulations]
[Pages 49737-49745]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-23384]

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 Rules and Regulations
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  Federal Register / Vol. 82, No. 207 / Friday, October 27, 2017 / 
Rules and Regulations  

[[Page 49737]]

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 183

[Docket No. USCG-2016-1012]
RIN 1625-AC37

Recreational Boat Flotation Standards--Update of Outboard Engine 
Weight Test Requirements

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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

SUMMARY: The Coast Guard finalizes, without change, an interim rule to 
update the table of outboard engine weights used in calculating safe 
loading capacities and required amounts of flotation material. The 
engine weight table was last updated in 1984, and the Coast Guard 
Authorization Act of 2015 requires that the Coast Guard update the 
table to reflect a specific standard. Finalizing the interim rule will 
acknowledge the two public comments received, and contribute to public 
awareness of and certainty about the June 1, 2018, effective date.

DATES: This final rule is effective on June 1, 2018.

ADDRESSES: Comments and materials received from the public, as well as 
documents mentioned in this preamble as being available in the docket, 
are part of docket USCG-2016-1012 and are available using the Federal 
eRulemaking Portal. You can find this docket on the Internet by going 
to http://www.regulations.gov, inserting USCG-2016-1012 in the 
``Search'' box, and then clicking ``Search.''

FOR FURTHER INFORMATION CONTACT: For information about this document 
call or email Mr. Jeffrey Ludwig, Coast Guard; telephone 202-372-1061, 
email [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents for Preamble

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

ABYC American Boat and Yacht Council
ABYC S-30 American Boat and Yacht Council S-30--Outboard Engines and 
Related Equipment Weights
CGAA Coast Guard Authorization Act of 2015 (Pub. L. 114-120, 130 
Stat. 27; Feb. 8, 2016)
CFR Code of Federal Regulations
DHS Department of Homeland Security
E.O. Executive Order
FR Federal Register
FRFA Final Regulatory Flexibility Analysis
MIC Manufacturer Identification Code
NAICS North American Industry Classification System
NBSAC National Boating Safety Advisory Council
NMMA National Marine Manufacturers Association
OMB Office of Management and Budget
Pub. L. Public Law
RA Regulatory analysis
Sec.  Section symbol
SBA Small Business Administration
U.S.C. United States Code

II. Basis and Purpose

    Section 308 of the Coast Guard Authorization Act of 2015 (Pub. L. 
114-120, 130 Stat. 27) (CGAA) requires the Coast Guard to issue 
regulations, not later than 180 days after enactment, updating Table 4 
of subpart H in Title 33 of the Code of Federal Regulations (CFR) part 
183 to reflect the American Boat and Yacht Council S-30--Outboard 
Engines and Related Equipment Weights (ABYC S-30) standard.
    Additionally, 46 U.S.C. 4302(b), which provides authority for 33 
CFR part 183, requires the effective date for rules issued under that 
provision be delayed at least 180 days after publication, but not more 
than 2 years for cases involving major product design, retooling, or 
changes in the manufacturing process. Section 4302(b) also requires 
consultation with the National Boating Safety Advisory Council 
(NBSAC).\1\ Because this rule amends regulations issued pursuant to 
section 4302, the 180-day delay is appropriate to provide manufacturers 
with time to adjust their operations to comply with the new standard. 
The Coast Guard has implemented that delay of effective date in this 
final rule.
---------------------------------------------------------------------------

    \1\ The NBSAC recommended to the Coast Guard in 2000 that the 
weight table be updated (Resolution number 2000-66-05), and 
discussed the replacement of Table 4 with the ABYC standard at their 
April 2016 meeting.
---------------------------------------------------------------------------

III. Regulatory History

    On April 5, 2017, the Coast Guard published an interim rule with 
request for comments (82 FR 16512). We received two public comments on 
the interim rule. No public meeting was requested, and none was held.

IV. Background

    Congress has authorized the Coast Guard to prescribe regulations 
establishing minimum safety standards for recreational vessels and 
associated equipment. In 1977, the Coast Guard established flotation 
requirements for boats less than 20 feet in length, and established a 
weight table (Table 4 of subpart H in 33 CFR part 183) used to assist 
the boat manufacturer in determining the amount of flotation to be 
included in a boat's design and construction.
    Table 4 was last updated in 1984, but the size and weight of 
outboard engines have evolved over the years to the point that Table 4 
no longer accurately represents the weights of outboard engines 
available on the market.
    The American Boat and Yacht Council (ABYC) is a non-profit 
organization that develops voluntary safety standards for the design, 
construction, maintenance, and repair of recreational boats. Among the 
voluntary safety standards that ABYC develops and updates on a regular 
basis is S-30--Outboard Engines and Related Equipment Weights (ABYC S-
30). This standard reflects the current state of marine outboard engine 
weights.

[[Page 49738]]

V. Discussion of the Rule

    This rulemaking adopts the current ABYC S-30 to replace Table 4 of 
subpart H in 33 CFR part 183. The current ABYC S-30 is dated July 2012, 
and was the standard in effect on the date of enactment of the CGAA.
    In the CFR, Table 4 applies to monohull outboard boats that are 
less than 20 feet in length, which includes recreational vessels as 
well as some commercial fishing vessels. Table 4 is also used 
indirectly for flotation requirements for survival craft covered by 46 
CFR part 25 (uninspected vessels), 46 CFR part 117 (small passenger 
vessels carrying more than 150 passengers), 46 CFR part 141 (towing 
vessels) and 46 CFR part 180 (small passenger vessels under 100 gross 
tons). Changing the figures in Table 4, as required by the CGAA, will 
require more flotation in each new boat, to support the weight of 
heavier engines.
    The interim rule removed Table 4 and replaced it with a new section 
(section 183.75) in subpart E of part 183. That section contains the 
table of the ABYC S-30 standard and its corresponding footnotes. The 
Coast Guard made minor edits to the footnotes developed by ABYC to 
accommodate the location of the table in the CFR and to reflect the 
removal of Table 4. We also made conforming changes to several sections 
that referenced Table 4.
    Finalizing the rule will acknowledge the public comments received, 
and contribute to public awareness of and certainty about the June 1, 
2018, effective date.

VI. Discussion of Comments and Changes

    The Coast Guard received two public comments in response to the 
interim rule. One commenter was supportive of the changes made in the 
interim rule. The other comment stated that in addition to small boat 
flotation, other factors that contribute to boat safety should be 
considered. The Coast Guard agrees that other factors can contribute to 
boat safety. However, they are outside of the scope of this rulemaking, 
in which we are focused on the requirements of the CGAA and the ABYC S-
30 standard. This final rule makes no changes to the interim rule.

VII. Regulatory Analyses

    We developed this rule after considering numerous statutes and 
Executive Orders (E.O.s) related to rulemaking. Below we summarize our 
analyses based on these statutes or E.O.s.

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, the Office of Management and Budget (OMB) has 
not reviewed it. As this rule is not a significant regulatory action, 
this rule is exempt from the requirements of Executive Order 13771. See 
OMB's Memorandum ``Guidance Implementing Executive Order 13771, Titled 
`Reducing Regulation and Controlling Regulatory Costs''' (April 5, 
2017). A regulatory analysis (RA) follows. This RA is unchanged from 
the RA included in the interim rule (82 FR 16512; April 5, 2017).
    This RA provides an evaluation of the economic impacts associated 
with this final rule. The Coast Guard is issuing a final rule to 
implement section 308 of the CGAA. The CGAA mandates that the Coast 
Guard issue regulations to amend Table 4 of subpart H in 33 CFR part 
183 to reflect the standards in ABYC S-30. Consequently, 100 percent of 
the costs of this rule are due to a Congressional mandate and the Coast 
Guard has no discretion to adopt a different standard that would lower 
the cost of this rule. Changes in the design and construction of modern 
outboard engines necessitate a change in the table of outboard engine 
weights used in calculating safe loading capacities and required 
amounts of flotation material in the Safe Loading and Flotation 
Standards found in 33 CFR part 183, subparts G and H.
    Table 1 of this document provides a summary of the affected 
population, costs, and benefits of this rule.

                                Table 1--Summary of the Impacts of the Final Rule
----------------------------------------------------------------------------------------------------------------
                              Category                                                  Summary
----------------------------------------------------------------------------------------------------------------
Applicability.......................................................  Update Table 4 of subpart H in 33 CFR part
                                                                       183 with ABYC S-30.
Affected Population.................................................  1,427 manufacturers of monohull outboard
                                                                       boats of less than 20 feet in length.
Costs to Industry ($, 7% discount rate).............................  10-year: $6,624,488.
                                                                      Annualized: $943,178.
Unquantified Benefits...............................................  Creates uniformity by aligning all boats
                                                                       to the same standard.
                                                                      Brings those boats not currently in
                                                                       compliance with ABYC S-30 to a higher
                                                                       level of safety than the standard
                                                                       currently in regulation.
----------------------------------------------------------------------------------------------------------------

Affected Population
    This final rule adopts the current ABYC S-30 to replace Table 4 of 
subpart H in 33 CFR part 183. Table 4 applies to monohull outboard 
boats that are less than 20 feet in length, including recreational 
vessels and some commercial fishing vessels.
    Table 4 is also used indirectly for flotation requirements for 
survival craft covered by 46 CFR part 25 (uninspected vessels), 46 CFR 
part 117 (small passenger vessels carrying more than 150 passengers), 
46 CFR part 141 (towing vessels), and 46 CFR part 180 (small passenger 
vessels under 100 gross tons). Small passenger vessels are required to 
carry certain survival craft, depending on their route and 
construction, in order to have the capacity to evacuate a certain 
percentage of the number of people on board. These survival craft are 
generally life rafts or floats, which do not have engines and are not 
impacted by this final rule. However, small passenger

[[Page 49739]]

vessels could voluntarily carry a small boat that can be used to carry 
some of the passengers, thereby reducing the number of other survival 
craft they are required to carry (46 CFR 117.200(b) and 46 CFR 
180.200(b)). Because this is a voluntary option available for these 
vessels, we do not include them in our analysis. However, we do note 
that if the uninspected vessels, small passenger vessels carrying more 
than 150 passengers, towing vessels, or small passenger vessels under 
100 gross tons choose to carry a small boat on board that does not meet 
ABYC S-30 standard, they could be indirectly affected by this final 
rule. Because this final rule applies only to new boats manufactured 
after June 1, 2018, any small passenger vessels already carrying small 
boats subject to Table 4 of subpart H are not affected. If they choose 
to replace their small boat with a boat built after June 1, 2018, they 
may be indirectly affected if the manufacturer passes the costs of this 
final rule on to the consumers. We account for the direct costs to 
manufacturers in this analysis.
    The final rule affects manufacturers that produce monohull outboard 
boats that are less than 20 feet in length and that are not currently 
building boats to ABYC S-30 standard. The Coast Guard used the list of 
active Manufacturer Identification Code (MIC) holders, as required by 
33 CFR 181 subpart C, to determine the affected population. This list 
represents all recreational boat MICs that are currently active. We 
then removed any MICs that will not be affected by this rule from the 
list of manufacturers. This includes: (1) Manufacturers with multiple 
MICs; (2) MICs belonging to manufacturers that only build boats greater 
than 20 feet in length; (3) MICs belonging to manufacturers that do not 
build monohull outboard boats; and (4) MICs belonging to manufacturers 
that only produce boats exempted from this regulation by 33 CFR 
183.201(b), including sailboats, canoes, kayaks, inflatable boats, 
submersibles, surface effect vessels, amphibious vessels, and 
raceboats. We found there are no more than 1,519 affected manufacturers 
that produce monohull outboard boats that are less than 20 feet in 
length.
    Some of these 1,519 monohull manufacturers are currently in 
compliance with ABYC S-30 standard, and therefore will not incur 
additional costs because of this rule. The National Marine 
Manufacturers Association (NMMA) requires its members to build boats to 
the ABYC standard.\2\ These NMMA builders produce about 85 percent of 
the recreational boats built each year.\3\ We found 92 monohull 
manufacturers that are currently NMMA members and therefore we assume 
they are in compliance. We assume the remaining 1,427 monohull 
manufacturers are not compliant with the current voluntary standard and 
will be affected by this rule.
---------------------------------------------------------------------------

    \2\ See Michael Vatalaro, What ``NMMA-Certified'' Really Means, 
BoatUS, Feb. 2014, http://www.boatus.com/magazine/2014/february/what-nnma-certified-means.asp.
    \3\ Id.
---------------------------------------------------------------------------

Costs to Industry
    This final rule adopts the current ABYC S-30, to replace Table 4 of 
subpart H. This change will increase costs to 1,427 monohull 
manufacturers that are assumed to be not in compliance. The increase in 
the weight table figures will require an additional 1 to 2 cubic feet 
of flotation to be added to each boat manufactured after the effective 
date of June 1, 2018. We estimate the foam for the additional flotation 
will cost an average of $10 per boat.\4\ Some manufacturers may need to 
make minor adjustments such as enclosing an aft seat and adding foam 
under the seat to accommodate the additional foam in the boats. 
Therefore, Coast Guard uses an estimate of $50 per boat to account for 
the foam and any minor adjustments that may be necessary.\5\ 
Manufacturers could incur costs related to determining where to put the 
additional flotation on a vessel, but we believe redesign costs would 
not be needed as the additional flotation material is minimal and the 
placement of the material is fairly standard. The manufacturers are 
already required to add flotation to boats, so there will be no costs 
for new equipment, facilities, or retrofitting of facilities.
---------------------------------------------------------------------------

    \4\ The $10 estimate is based on 2 LB Density Urethane Foam 
estimates from US Composites (http://www.uscomposites.com/foam.html) 
and conversations with manufacturers. Foam prices vary based on the 
size of the kits. The cost of kits range from a 2 cubic foot kit 
cost of $22.50 ($11.25 per cubic foot) to $264 for a 40 cubic foot 
kit ($6.60 per cubic foot). Conversations with manufacturers 
confirmed $10 is a reasonable average estimate for adding 1 to 2 
cubic feet of additional flotation, that takes into account the 
varying costs based on the size of kits purchased and that 
manufacturers may pay less than the listed prices based on their 
purchasing agreements with the suppliers.
    \5\ Based on discussions with manufacturers, the additional $40 
estimate is to cover the cost of enclosing a rear seat to add 
flotation foam under it or to add small chambers, especially on open 
aluminum boats, to accommodate the additional flotation foam.
---------------------------------------------------------------------------

    To estimate the total cost to industry, we then estimated the total 
number of outboard boats less than 20 feet in length manufactured per 
year by the monohull manufacturers that are not in compliance. The 
Coast Guard used data from the NMMA's 2015 Recreational Boating 
Statistical Abstract \6\ to estimate the total affected outboard boats. 
The NMMA breaks down outboard boat sales by two hull materials: 
Fiberglass and aluminum. The NMMA estimates that in 2015, 51,300 
fiberglass outboard boats and 104,500 aluminum outboard boats were 
sold. Of these boats sold, 42.7 percent of the fiberglass outboard 
boats and 60.4 percent of the aluminum outboard boats were less than 20 
feet in length. Multiplying the percentage market share of boats less 
than 20 feet by the total sales of boats by material, we found there 
were 21,905 fiberglass boats and 63,118 aluminum outboard boats less 
than 20 feet sold in 2015 (see Table 2).
---------------------------------------------------------------------------

    \6\ A summary of the NMMA abstract is available at https://www.nmma.org/statistics/publications/statistical-abstract. The full 
report is available for purchase through NMMA. The Coast Guard used 
data from Powerboat Sales Trends, Table 1: Outboard boats: Estimated 
sales by hull market; Table 2: Fiberglass outboard boats: Estimated 
market share by length; and Table 3: Aluminum outboard boats: 
Estimated market share by length.

[[Page 49740]]

                    Table 2--Total Sales and Market Share of Outboard Boats by Material Type
----------------------------------------------------------------------------------------------------------------
                                                                                    Percentage
                                                                                   market share   Total outboard
                    Outboard boat by material                        Estimated    outboard boats    boats less
                                                                    total sales    less than 20    than 20 feet
                                                                                       feet        sold in 2015
----------------------------------------------------------------------------------------------------------------
Fiberglass......................................................          51,300            42.7          21,905
Aluminum........................................................         104,500            60.4          63,118
                                                                 -----------------------------------------------
    Total.......................................................         155,800  ..............          85,023
----------------------------------------------------------------------------------------------------------------

    The total 85,023 outboard boats less than 20 feet that were sold in 
2015 were produced by a mix of manufacturers that are already in 
compliance with the ABYC S-30 standard and manufacturers that are not 
in compliance and will be impacted by this rule. The NMMA estimates 
that around 85 percent of the boats sold in the United States are 
already in compliance with the ABYC S-30 standard. Therefore, the Coast 
Guard estimates 15 percent of the total outboard boats less than 20 
feet sold were produced by manufacturers not in compliance with the 
ABYC standard. These 12,753 boats (15 percent of the 85,023 outboard 
boats less than 20 feet, rounded) will require $50 of additional 
flotation materials to align with the new standard.
    To estimate the affected outboard boats over the 10-year period of 
analysis, we used NMMA data to forecast future boat building 
production.\7\ The NMMA anticipates annual production will rise through 
at least 2018 before leveling off into at least early 2019. The NMMA 
does not have estimates for production past 2019. Since the NMMA 
anticipates production will plateau once it reaches the levels of 
production estimated in 2019, the Coast Guard assumes production will 
hold at 2019 levels. Production could decrease or increase, resulting 
in higher or lower industry costs, but for the purposes of this 
analysis we assume production remains constant past 2019. Table 3 shows 
our baseline affected population, the forecasted percentage increases 
over the previous year estimated by NMMA, and the resulting number of 
affected outboard boats.\8\
---------------------------------------------------------------------------

    \7\ Production forecasts are internal NMMA estimates that were 
provided to the Coast Guard on 9/7/2016.
    \8\ Forecasted percentages for 2016 and 2019 were given in NMMA 
data. Forecasted percentages for years 2017 and 2018 were calculated 
from NMMA's forecasted annual production index. For 2017, the 
affected outboard boats manufactured annually are calculated as [1 + 
((170.1-147.6)/147.6)] * 14,232 = 16,402, rounded. For 2018, the 
affected outboard boats manufactured annually are calculated as [1 + 
(185.8-170.1)/170.1] * 16,402, rounded.

               Table 3--Forecasted Affected Outboard Boats
------------------------------------------------------------------------
                                            Forecasted       Affected
                                            percentage    outboard boats
                  Year                     increase over   manufactured
                                           previous year     annually
------------------------------------------------------------------------
2015....................................  ..............          12,753
2016....................................            11.6          14,232
2017....................................            15.2          16,402
2018....................................             9.2          17,916
2019....................................             6.1          19,009
2020+...................................             0.0          19,009
------------------------------------------------------------------------

    As this final rule will be effective June 1, 2018, any outboard 
boats manufactured after this date will need to be in compliance with 
ABYC S-30 standard. The Coast Guard anticipates most manufacturers will 
begin making the necessary changes at the beginning of 2018. All 
manufacturers will be in compliance by June 1, 2018 of Year 1, which 
corresponds with the 2018 estimated affected outboard boats in Table 3. 
We estimate there will be 17,916 affected outboard boats in Year 1 and 
19,009 affected outboard boats in Years 2 through 10. Table 4 
summarizes the estimated affected population of outboard boats that we 
used to estimate the 10-year costs of this final rule.

         Table 4--Ten-Year Projection of Affected Outboard Boats
------------------------------------------------------------------------
                                                             Affected
                          Year                            outboard boats
------------------------------------------------------------------------
1.......................................................          17,916
2.......................................................          19,009
3.......................................................          19,009
4.......................................................          19,009
5.......................................................          19,009
6.......................................................          19,009
7.......................................................          19,009
8.......................................................          19,009
9.......................................................          19,009
10......................................................          19,009
------------------------------------------------------------------------

    We then multiplied the projected number of affected outboard boats 
each year in Table 4 by the estimated cost per boat of $50. Table 5 
shows the total costs of this final rule on an undiscounted basis, and 
discounted at 7 and 3 percent.

                                       Table 5--Total Costs of Final Rule
----------------------------------------------------------------------------------------------------------------
                                                                       Total             Total, discounted
                              Year                                 undiscounted  -------------------------------
                                                                       costs            7%              3%
----------------------------------------------------------------------------------------------------------------
1...............................................................        $895,800        $837,196        $869,709
2...............................................................         950,450         830,160         895,890
3...............................................................         950,450         775,850         869,796
4...............................................................         950,450         725,094         844,463
5...............................................................         950,450         677,658         819,867
6...............................................................         950,450         633,325         795,987
7...............................................................         950,450         591,892         772,803
8...............................................................         950,450         553,171         750,294
9...............................................................         950,450         516,982         728,441
10..............................................................         950,450         483,161         707,224
                                                                 -----------------------------------------------

[[Page 49741]]

 
    Total.......................................................       9,449,850       6,624,488       8,054,473
                                                                 -----------------------------------------------
        Annualized..............................................  ..............         943,178         944,230
----------------------------------------------------------------------------------------------------------------

    The total 10-year undiscounted cost of this final rule is 
$9,449,850. The total 10-year discounted cost of this final rule is 
$6,624,488 and the annualized cost is $943,178, both discounted at 7 
percent. The manufacturers of outboard boats less than 20 feet in 
length not in compliance with ABYC S-30 standard will bear these costs. 
However, it is possible that manufacturers may pass these costs onto 
the recreational boat owners by incorporating the additional costs of 
this final rule into the sales price. The sale price of the affected 
boats can range from $3,000 through $50,000. If we use an average of 
$26,500 per boat, the $50 average cost per boat represents 0.2 percent 
of the sales price. However, 85 percent of the boats sold in the United 
States are already in compliance and include this cost of floatation in 
the sales prices.
Benefits
    This rule does not provide any quantitative benefits. However, it 
does have qualitative benefits. This rule creates uniformity by 
aligning all boats to the same standard. The ABYC S-30 provides a 
higher level of safety than that provided by the standard currently in 
the regulation. Requiring all boats less than 20 feet in length that 
currently do not meet ABYC S-30 standard weights to comply with that 
standard will improve the buoyancy of these boats, and therefore, 
improve their operational safety.

B. Small Entities

    In accordance with the Regulatory Flexibility Act (5 U.S.C. 601-
612), the Coast Guard prepared this Final Regulatory Flexibility 
Analysis (FRFA) that examines the impacts of the final rule on small 
entities (5 U.S.C. 601 et seq.). We recognize that a FRFA is not 
required for a final rule that was not preceded by a general notice of 
proposed rulemaking. We are including an analysis of the final rule 
requirements on small entities for informational purposes.
    A small entity may be: A small independent business, defined as 
independently owned and operated, is organized for profit, and is not 
dominant in its field per the Small Business Act (5 U.S.C. 632); a 
small not-for-profit organization (any not-for-profit enterprise which 
is independently owned and operated and is not dominant in its field); 
or a small governmental jurisdiction (locality with fewer than 50,000 
people) per the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612.
    A FRFA addresses the following:
    (1) A statement of the need for, and objectives of, the rule;
    (2) A statement of the significant issues raised by the public 
comments in response to the initial regulatory flexibility analysis, a 
statement of the assessment of the agency of such issues, and a 
statement of any changes made in the interim final rule as a result of 
such comments;
    (3) The response of the agency to any comments filed by the Chief 
Counsel for Advocacy of the Small Business Administration in response 
to the interim final rule, and a detailed statement of any change made 
to the interim final rule in the final rule as a result of the 
comments;
    (4) A description of and an estimate of the number of small 
entities to which the rule will apply or an explanation of why no such 
estimate is available;
    (5) A description of the projected reporting, recordkeeping and 
other compliance requirements of the rule, including an estimate of the 
classes of small entities which will be subject to the requirement and 
the type of professional skills necessary for preparation of the report 
or record; and
    (6) A description of the steps the agency has taken to minimize the 
significant economic impact on small entities consistent with the 
stated objectives of applicable statutes, including a statement of the 
factual, policy, and legal reasons for selecting the alternative 
adopted in the final rule and why each one of the other significant 
alternatives to the rule considered by the agency which affect the 
impact on small entities was rejected.
    1. A statement of the need for, and objectives of, the rule.
    Section 308 of the CGAA requires the Coast Guard to issue 
regulations updating Table 4 of subpart H in Title 33 CFR part 183 to 
reflect the ABYC S-30 standard.
    Congress has authorized the Coast Guard to prescribe regulations 
establishing minimum safety standards for recreational vessels and 
associated equipment. In 1977, the Coast Guard established flotation 
requirements for boats less than 20 feet in length, and established a 
weight table (Table 4 of subpart H in 33 CFR part 183) used to assist 
the boat manufacturer in determining the amount of flotation to be 
included in a boat's design and construction.
    Table 4 was last updated in 1984, but the size and weight of 
outboard engines has evolved over the years to the point where Table 4 
no longer accurately represents the weights of outboard engines 
available on the market. Changes in the design and construction of 
modern outboard engines necessitate a change in the table of outboard 
engine weights used in calculating safe loading capacities and required 
amounts of flotation material in the Safe Loading and Flotation 
Standards found in 33 CFR part 183, subparts G and H.
    2. A statement of the significant issues raised by the public 
comments in response to the initial regulatory flexibility analysis, a 
statement of the assessment of the agency of such issues, and a 
statement of any changes made in the interim final rule as a result of 
the comments.
    The Coast Guard did not receive any comments on the initial 
regulatory flexibility analysis.
    3. The response of the agency to any comments filed by the Chief 
Counsel for Advocacy of the Small Business Administration in response 
to the interim final rule, and a detailed statement of any change made 
to the interim final rule in the final rule as a result of the 
comments.
    The Coast Guard did not receive any comments from the Small 
Business Administration's (SBA) Office of Advocacy regarding the impact 
that the interim final rule would have on small entities.
    4. A description of and an estimate of the number of small entities 
to which the rule will apply or an explanation of why no such estimate 
is available.

[[Page 49742]]

    This final rule affects manufacturers that produce monohull 
outboard boats that are less than 20 feet in length that are not 
currently building boats to ABYC S-30 standard.
    Based on Coast Guard's list of active MIC holders, we estimate this 
final rule will affect 1,427 U.S. companies. We researched the number 
of employees and revenue of these companies using proprietary and 
public business databases.\9\ We then measured company size data using 
the SBA's business size standards to assess how many companies in this 
industry may be small entities.\10\ The SBA provides business size 
standards for all sectors of the North American Industry Classification 
System (NAICS).\11\
---------------------------------------------------------------------------

    \9\ Data sources: ReferenceUSA (www.referenceusagov.com) and 
Manta (www.manta.com).
    \10\ ``Small entities'' include small businesses that meet the 
Small Business Administration size standard for small business 
concerns at 13 CFR 121.201, small governmental jurisdictions with a 
population of less than 50,000, and small organizations that are 
independently owned not-for-profit enterprises and which are not 
dominant in their field. See 5 U.S.C. 601(3)-(5).
    \11\ SBA size standards are matched to NAICS, effective February 
26, 2016. See Contracting: Table of Small Business Size Standards, 
https://www.sba.gov/content/small-business-size-standards.
---------------------------------------------------------------------------

    Using a random sample of companies out of the total population of 
1,427 affected U.S. companies, we researched 749 companies and found 
company-specific revenue and employment information and data on 388 of 
them.\12\ We assumed that the remaining 361 companies (for which the 
revenue and employment information was unavailable) are small entities 
for the purpose of this analysis. Of the 388 companies for which 
revenue and employment information was available, we found three 
entities that exceeded the small entity thresholds for their relevant 
NAICS code. The remaining 385 companies are small entities as defined 
by the SBA thresholds. Adding these small entities to the companies 
without revenue and employment information, we estimate a total of 746 
of the companies are small entities. Using the results of this random 
sample, we calculated the fraction of small entities by dividing the 
total small entities by the sample size. Therefore, we estimate that 
99.6 percent of all monohull companies not currently building to ABYC 
S-30 standard fall below the threshold for small businesses. Table 6 
summarizes the findings of our small entity threshold analysis.
---------------------------------------------------------------------------

    \12\ Using a 95 percent confidence level, a sample size of 385 
companies is sufficient. Our research started with a random sample 
of 749 companies that yielded 388 entities for which requisite 
information was found.

       Table 6--Number of Companies and Small Entities Researched
------------------------------------------------------------------------
                                                            Number of
                       Category                             companies
------------------------------------------------------------------------
(a) Sample Size.......................................               749
(b) Without Revenue or Employment Data................               361
(c ) With Revenue or Employee Data....................               388
(d) Exceeded Small Entity Threshold...................                 3
(e) Below the Small Business Threshold................               385
Total Small Entities, (b) + (e).......................               746
Total, (a)............................................               749
Fraction Small Entities...............................             99.6%
------------------------------------------------------------------------

    Our analysis of the available company information revealed 64 
primary NAICS codes. Table 7 displays the NAICS codes of the small 
entities found in our sample.

                                Table 7--NAICS Codes of Identified Small Entities
----------------------------------------------------------------------------------------------------------------
                                                         Count of                                    SBA size
                Title                   NAICS code       companies      SBA size  standard type      threshold
----------------------------------------------------------------------------------------------------------------
Boat Building.......................          336612             151  Employees.................           1,000
Boat Dealers........................          441222              56  Revenue...................     $32,500,000
Other Personal and Household Goods            811490              32  Revenue...................      $7,500,000
 Repair and Maintenance.
Marinas.............................          713930              28  Revenue...................      $7,500,000
All Other Support Services..........          561990              14  Revenue...................     $11,000,000
Mineral Wool Manufacturing..........          327993              11  Employees.................           1,500
Commercial and Industrial Machinery           811310               8  Revenue...................      $7,500,000
 and Equipment (except Automotive
 and Electronic) Repair and
 Maintenance.
All Other Miscellaneous                       339999               5  Employees.................             500
 Manufacturing.
Fabricated Structural Metal                   332312               4  Employees.................             500
 Manufacturing.
New Single-family Housing                     236115               3  Revenue...................     $36,500,000
 Construction (Except For-Sale
 Builders).
All Other Plastics Product                    326199               3  Employees.................             750
 Manufacturing.
Sporting and Recreational Goods and           423910               3  Employees.................             100
 Supplies Merchant Wholesalers.
Other Miscellaneous Durable Goods             423990               3  Employees.................             100
 Merchant Wholesalers.
Other Building Material Dealers.....          444190               3  Revenue...................     $20,500,000
Engineering Services................          541330               3  Revenue...................     $15,000,000
All Other Business Support Services.          561499               3  Revenue...................     $15,000,000
Site Preparation Contractors........          238910               2  Revenue...................     $15,000,000
Sheet Metal Work Manufacturing......          332322               2  Employees.................             500
Special Die and Tool, Die Set, Jig            333514               2  Employees.................             500
 and Fixture Manufacturing.
Travel Trailer and Camper                     336214               2  Employees.................           1,000
 Manufacturing.
Wholesale Trade Agents and Brokers..          425120               2  Employees.................             100
All Other Miscellaneous Store                 453998               2  Revenue...................      $7,500,000
 Retailers (except Tobacco Stores).
Museums.............................          712110               2  Revenue...................     $27,500,000
Hunting and Trapping................          114210               1  Revenue...................      $5,500,000
Water Supply and Irrigation Systems.          221310               1  Revenue...................     $27,500,000

[[Page 49743]]

 
Commercial and Institutional                  236220               1  Revenue...................     $36,500,000
 Building Construction.
Other Heavy and Civil Engineering             237990               1  Revenue...................     $36,500,000
 Construction.
Plumbing, Heating, and Air-                   238220               1  Revenue...................     $15,000,000
 Conditioning Contractors.
All Other Specialty Trade                     238990               1  Revenue...................     $15,000,000
 Contractors.
Fabric Coating Mills................          313320               1  Employees.................           1,000
Other Millwork (including Flooring).          321918               1  Employees.................             500
Plastics Material and Resin                   325211               1  Employees.................           1,250
 Manufacturing.
Fertilizer (Mixing Only)                      325314               1  Employees.................             500
 Manufacturing.
All Other Miscellaneous Nonmetallic           327999               1  Employees.................             500
 Mineral Product Manufacturing.
Alumina Refining and Primary                  331313               1  Employees.................           1,000
 Aluminum Production.
Aluminum Sheet, Plate and Foil                331315               1  Employees.................           1,250
 Manufacturing.
Other Aluminum Rolling, Drawing, and          331318               1  Employees.................             750
 Extruding.
Plate Work Manufacturing............          332313               1  Employees.................             750
Farm Machinery and Equipment                  333111               1  Employees.................           1,250
 Manufacturing.
Overhead Traveling Crane, Hoist and           333923               1  Employees.................           1,250
 Monorail System Manufacturing.
All Other Miscellaneous General               333999               1  Employees.................             500
 Purpose Machinery Manufacturing.
Other Communications Equipment                334290               1  Employees.................             750
 Manufacturing.
Truck Trailer Manufacturing.........          336212               1  Employees.................           1,000
Motor Vehicle Steering and                    336330               1  Employees.................           1,000
 Suspension Components (except
 Spring) Manufacturing.
Ship Building and Repairing.........          336611               1  Employees.................           1,250
All Other Transportation Equipment            336999               1  Employees.................           1,000
 Manufacturing.
Sporting and Athletic Goods                   339920               1  Employees.................             750
 Manufacturing.
Hobby, Toy and Game Stores..........          451120               1  Revenue...................     $27,500,000
Scenic and Sightseeing                        487210               1  Revenue...................      $7,500,000
 Transportation, Water.
Navigational Services to Shipping...          488330               1  Revenue...................     $38,500,000
Miscellaneous Intermediation........          523910               1  Revenue...................     $38,500,000
Recreational Goods Rental...........          532292               1  Revenue...................      $7,500,000
Landscape Architectural Services....          541320               1  Revenue...................      $7,500,000
Industrial Design Services..........          541420               1  Revenue...................      $7,500,000
Graphic Design Services.............          541430               1  Revenue...................      $7,500,000
Administrative Management and                 541611               1  Revenue...................     $15,000,000
 General Management Consulting
 Services.
Other Management Consulting Services          541618               1  Revenue...................     $15,000,000
All Other Professional, Scientific            541990               1  Revenue...................     $15,000,000
 and Technical Services.
Landscaping Services................          561730               1  Revenue...................      $7,500,000
All Other Miscellaneous Schools and           611699               1  Revenue...................     $11,000,000
 Instruction.
Emergency and Other Relief Services.          624230               1  Revenue...................     $32,500,000
Fitness and Recreational Sports               713940               1  Revenue...................      $7,500,000
 Centers.
RV (Recreational Vehicle) Parks and           721211               1  Revenue...................      $7,500,000
 Campgrounds.
Civic and Social Organizations......          813410               1  Revenue...................      $7,500,000
----------------------------------------------------------------------------------------------------------------

    Revenue Impacts of the Final Rule. To determine the impacts of the 
final rule on small monohull manufacturers, we used information on 
revenues or employee size as available on business directory Web 
sites.\13\
---------------------------------------------------------------------------

    \13\ As indicated by either the revenue or employee data for 
businesses, we use ReferenceUSA (www.referenceusagov.com) and Manta 
(www.manta.com).
---------------------------------------------------------------------------

    As discussed in the ``Cost to Industry'' section of the RA, we 
estimate that there are 17,916 outboard boats less than 20 feet 
produced by manufacturers annually that will require additional 
flotation materials to align with this final rule in Year 1. Coast 
Guard does not have information on the market share of the small entity 
manufacturers and the number of boats they produce each year. 
Therefore, we assume each manufacturer consistently produces the same 
number of boats each year and that each manufacturer has the same 
market share. With 1,427 affected U.S. companies, this is an average of 
about 13 outboard boats per manufacturer (rounded). In Years 2 through 
10, the Coast Guard estimates there are 19,009 outboard boats affected, 
at an average of about 13 outboard boats per manufacturer (19,009 boats 
divided by 1,427 manufacturers, rounded). At an estimated cost of $50 
per outboard boat, the average total cost per manufacturer is $650 in 
Years 1 through 10. Table 8 summarizes the average costs per 
manufacturer of the final rule by year.

                                                   Table 8--Final Rule Average Costs per Manufacturer
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                  Average outboard
                         Year(s)                           Affected outboard  Manufacturers not  boats produced by  Cost per outboard   Average cost per
                                                                 boats          in compliance       manufacturer          boats           manufacturer
--------------------------------------------------------------------------------------------------------------------------------------------------------
1........................................................             17,916              1,427                 13                $50               $650
2-10.....................................................             19,009              1,427                 13                 50                650
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Next, we compared the average cost per manufacturer to the revenue 
of the manufacturers in our sample. As shown in Table 6, we found 
revenue or company data for 385 small entities. We found revenue 
information for 371 of these small entities, and we were only able to 
find employee data for 14 entities. Therefore, we could not compare the 
cost per manufacturer to the revenues for the 14 entities with only 
employee data. Table 9 summarizes the results. In Years 1 through 10, 
94.6 percent of the affected manufacturers will incur a cost of 1

[[Page 49744]]

percent or less of revenue in any given year, while 0.3 percent will 
incur a cost impact of greater than 10 percent of revenue.

                   Table 9--Final Rule Revenue Impacts
------------------------------------------------------------------------
                                        Number of          Percent of
           Impact range                  affected           affected
                                      manufacturers      manufacturers
------------------------------------------------------------------------
0% < Impact <= 1%.................                352               94.9
1% < Impact <= 3%.................                 17                4.6
3% < Impact <= 5%.................                  1                0.3
5% < Impact <= 10%................                  0                  0
>= 10%............................                  1                0.3
                                   -------------------------------------
    Total.........................                371                100
------------------------------------------------------------------------

    5. A description of the projected reporting, recordkeeping and 
other compliance requirements of the rule, including an estimate of the 
classes of small entities which will be subject to the requirement and 
the type of professional skills necessary for preparation of the report 
or record.
    This rule calls for no new collection of information under the 
Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520.
    6. A description of the steps the agency has taken to minimize the 
significant economic impact on small entities consistent with the 
stated objectives of applicable statutes, including a statement of the 
factual, policy, and legal reasons for selecting the alternative 
adopted in the final rule and why each one of the other significant 
alternatives to the rule considered by the agency which affect the 
impact on small entities was rejected.
    This final rule implements section 308 of CGAA. The CGAA mandates 
the update of Table 4 in 33 CFR part 183. As such, the Coast Guard has 
no discretion to offer alternatives that minimize the impact on small 
entities while accomplishing the stated objective of the statute. To 
ease implementation of this requirement, the Coast Guard is delaying 
the effective date until June 1, 2018, so that the new requirements 
will apply only to boat manufacturers who build boats after that date.
    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).

C. Assistance for Small Entities

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

D. Collection of Information

    This rule calls for no new collection of information under the 
Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520.

E. Federalism

    A rule has implications for federalism under Executive Order 13132 
(``Federalism''), if it has a substantial direct effect on the 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 E.O. 13132 and 
have determined that it is consistent with the fundamental federalism 
principles and requirements described in Executive Order 13132. Our 
analysis is explained below.
    Congress directed the Coast Guard to ``establish minimum safety 
standards for recreational vessels'' (46 U.S.C. 4302). This rulemaking 
revises regulations issued pursuant to that statute and Congress has 
expressly limited States from regulating in this field, as specified in 
46 U.S.C. 4306. Under 46 U.S.C. 4306, ``a State or political 
subdivision of a State may not establish, continue in effect, or 
enforce a law or regulation establishing a recreational vessel or 
associated or equipment performance or other safety standard . . . that 
is not identical to a regulation prescribed under'' 46 U.S.C. 4302. As 
a result, States or local governments are expressly prohibited from 
regulating within this category unless the regulation is identical to 
regulation prescribed under 46 U.S.C. 4302 or an exemption is granted 
under 46 U.S.C. 4305. Therefore, the rule is consistent with the 
principles of federalism and preemption requirements in Executive Order 
13132.

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 E.O. 12630 (``Governmental Actions and 
Interference with Constitutionally Protected Property Rights'').

[[Page 49745]]

H. Civil Justice Reform

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

I. Protection of Children

    We have analyzed this rule under E.O. 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 E.O. 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 E.O. 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 E.O. 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 uses a voluntary consensus standard: The current ABYC S-
30.

M. Environment

    We have analyzed this rule under Department of Homeland Security 
Management Directive 023-01 and Commandant Instruction M16475.lD, 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 which do not individually or 
cumulatively have a significant effect on the human environment. This 
final rule is categorically excluded under section 2.B.2, figure 2-1, 
paragraphs (34)(d) and (e) of the Instruction and under section 6(a) of 
the ``Appendix to National Environmental Policy Act: Coast Guard 
Procedures for Categorical Exclusions, Notice of Final Agency Policy'' 
(67 FR 48243, July 23, 2002). This final rule involves the safe loading 
capacity and required amount of flotation material for certain 
recreational boats, which concerns equipping of vessels, as well as 
equipment and vessel operation safety standards. This rule supports the 
Coast Guard's maritime safety mission. A Record of Environmental 
Consideration (REC) supporting this determination is available in the 
docket as discussed in the ADDRESSES section of this rule.

List of Subjects in 33 CFR Part 183

    Marine safety.

0
For the reasons discussed in the preamble, the interim rule amending 33 
CFR part 183 that was published at 82 FR 16512 on April 5, 2017, is 
adopted as a final rule without change.

    Dated: October 23, 2017.
Jennifer F. Williams,
Captain, U.S. Coast Guard, Director of Inspections and Compliance.
[FR Doc. 2017-23384 Filed 10-26-17; 8:45 am]
 BILLING CODE 9110-04-P