Document ID: USCG-2023-0305-0001
Agency: uscg
Document Type: Rule
Title: Multi-Year Certificate of Documentation for Recreational Vessel Owners
Posted Date: 2023-11-14T05:00Z

[Federal Register Volume 88, Number 218 (Tuesday, November 14, 2023)]
[Rules and Regulations]
[Pages 77896-77902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25024]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Part 67

[Docket No. USCG-2023-0305]
RIN 1625-AC87

Multi-Year Certificate of Documentation for Recreational Vessel 
Owners

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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SUMMARY: The Coast Guard is issuing a final rule for recreational 
vessel owners to select a recreational vessel endorsement on a 
Certificate of Documentation (COD) with a validity of 1, 2, 3, 4, or 5 
years. Currently, our regulations require that a COD will be effective 
for a 5-year period. Congress passed, and the President signed, the 
self-executing National Defense Authorization Act of 2022 (2022 Act), 
which directs the Coast Guard to issue recreational vessel CODs for 1, 
2, 3, 4, or 5 years. By updating the Code of Federal Regulations (CFR) 
to reflect this change, this final rule harmonizes the requirements of 
the 2022 Act, aligns CFR text with current Coast Guard policy, and 
provides vessel owners' statutorily directed option to select the 
validity period of their COD that best suits their individual needs.

DATES: This final rule is effective December 14, 2023.

ADDRESSES: To view documents mentioned in this preamble as being 
available in the docket, go to www.regulations.gov, type USCG-2023-0305 
in the search box, and click ``Search.'' Next, in the Document Type 
column, select ``Supporting & Related Material.''

FOR FURTHER INFORMATION CONTACT: For information about this document, 
call or email Mr. Ronald Teague, Department of Homeland Security, U.S. 
Coast Guard, National Vessel Documentation Center, 792 T J Jackson 
Drive, Falling Waters, WV 25419; telephone 304-271-2506, email 
[email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents for Preamble

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

I. Abbreviations

2018 Act Frank LoBiondo Coast Guard Authorization Act of 2018
2021 final rule Certificate of Documentation--5 Year Renewal Fees 
final rule
2022 Act National Defense Authorization Act for Fiscal Year 2022
CFR Code of Federal Regulations
COD Certificate of Documentation
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
NVDC National Vessel Documentation Center
OMB Office of Management and Budget
Sec.  Section
SME Subject matter expert
U.S.C. United States Code

II. Basis and Purpose, and Regulatory History

    The legal basis for this final rule is found in Section 3511 of the 
National Defense Authorization Act for Fiscal Year 2022 (Pub. L. 117-
81, 135 Stat. 2238) (2022 Act), which the President signed on December 
27, 2021. The 2022 Act directed the Coast Guard to allow an owner of a 
vessel with only a recreational endorsement to choose a Certificate of 
Documentation (COD) validity period of 1, 2, 3, 4, or 5 years.
    The Coast Guard finds that good cause exists under the 
Administrative Procedure Act, Title 5 of the United States Code 
(U.S.C.), Section 553, to issue a final rule and dispense with notice 
and comment procedures. Prior notice and opportunity to comment on this 
rule are unnecessary under 5 U.S.C. 553(b)(B) because Section 3511 of 
the 2022 Act provides the Coast Guard no discretion in adopting the 
specific timeframes for issuance or renewal of recreational vessel 
CODs. Section 3511 of the 2022 Act does not allow for alternatives. It 
does not permit the Coast Guard to decide upon a different timeframe 
for renewal, choose to adopt a different renewal period, or respond to 
public comments by modifying the substance of the rule. Therefore, 
soliciting public comment on the correct time period for COD renewal 
for a recreational vessel, or on the decision to update the regulations 
to comport with the statutory mandate, is unnecessary. It should be 
noted that the Coast Guard has already implemented the requirements of 
Section 3511 of the

[[Page 77897]]

2022 Act and is presently issuing multi-year CODs to recreational 
vessels of at least 5 net tons. In addition, this good cause applies to 
formatting changes, for clarity, to the fee table in title 46 of the 
Code of Federal Regulations (CFR) section 67.550. These changes have no 
substantive effect on the public.

III. Background

    Before 2019, the Coast Guard issued CODs for a validity period of 1 
year only. Section 512 of the Frank LoBiondo Coast Guard Authorization 
Act of 2018 (2018 Act) (Pub. L. 115-282, 132 Stat. 4275), codified at 
46 U.S.C. 12105, specified that, in 2022, recreational vessels would be 
issued CODs with a validity period of 5 years. The 2018 Act provided a 
phase-in period, January 2019 through December 2021, during which 
recreational vessel owners could select an effective period for CODs 
for recreational vessels between 1 and 5 years.\1\ In January 2021, the 
Coast Guard published a final rule titled ``Certificate of 
Documentation--5 Year Renewal Fees'' (hereafter the ``2021 final 
rule'') implementing those changes (86 FR 5022).\2\
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    \1\ https://www.congress.gov/115/plaws/publ282/PLAW-115publ282.pdf (last visited 04/26/2023).
    \2\ https://www.federalregister.gov/documents/2021/01/19/2021-00526/certificate-of-documentation-5-year-renewal-fees (last visited 
04/26/2023).
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    The purpose of this final rule is to meet the Congressional mandate 
contained in Section 3511 of the 2022 Act, wherein Congress determined 
that the Coast Guard shall allow the issuance of a recreational 
endorsement on CODs with a validity period of 1, 2, 3, 4, or 5 years, 
instead of the previously mandated period of 5 years.

IV. Discussion of the Rule

    The 2022 Act authorizes the owner or operator of a recreational 
vessel to choose a period of effectiveness between 1 and 5 years for a 
certificate of documentation for a recreational vessel or the renewal 
thereof. This rule will bring current Coast Guard regulations in line 
with this self-executing provision of the 2022 Act. As discussed in 
section III., Background, the 2018 Act created a multi-year COD phase-
in period in anticipation of moving to a 5-year-only validity period 
for recreational vessel CODs. This 5-year-only COD validity period was 
anticipated to go into effect on January 1, 2022. However, Congress 
determined that preserving a multi-year choice of the validity period 
was in the best interest of recreational vessel owners. As such, the 
2022 Act was signed by the President in December 2021, and the 5-year-
only COD that was to go into effect on January 1, 2022, was never 
implemented by the Coast Guard. Instead, the Coast Guard carried out 
Congress' desire to continue to allow recreational vessel owners and 
operators the ability to choose a 1-, 2-, 3-, 4-, or 5-year COD.
    The Coast Guard made the public aware of this fact on the home page 
of the website for the National Vessel Documentation Center (NVDC), 
which processes vessel COD applications and renewals.\3\ Additionally, 
the ability to select from multiple validity periods for recreational 
vessel CODs is still present in NVDC instruction documentation,\4\ the 
initial application form CG-1258,\5\ and the renewal form CG-1280.\6\
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    \3\ https://www.dco.uscg.mil/Our-Organization/Deputy-for-Operations-Policy-and-Capabilities-DCO-D/National-Vessel-Documentation-Center/ (last visited 04/26/2023).
    \4\ https://www.dco.uscg.mil/Portals/9/DCO%20Documents/NVDC/COD%20RENEWAL.pdf (last visited 04/23/2023).
    \5\ https://www.dco.uscg.mil/Portals/9/DCO%20Documents/NVDC/CG-1258.pdf?ver=MPJjdit5LaS5B0_IFJv_1A%3d%3d (last visited 04/26/2023).
    \6\ https://www.dco.uscg.mil/Portals/9/DCO%20Documents/NVDC/CG-1280_Renewal_of_Certificate_Of_Documentation.pdf?ver=WPHaCWFat5gjwLZ4nFiplA%3d%3d (last visited 04/23/2023).
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    Currently, 46 CFR 67.163(a) states that recreational endorsements 
on a COD are valid for 5 years. In line with the 2022 Act, the Coast 
Guard amends this section to reflect that recreational endorsements on 
CODs can be valid for 1, 2, 3, 4, or 5 years. Additionally, the Coast 
Guard is editing paragraph (c) of Sec.  67.163 to reflect that 
recreational endorsements on CODs can be valid for 1, 2, 3, 4, or 5 
years. This is necessary for continuity, given the references to this 
section. The Coast Guard is also amending 46 CFR 67.163(b) to remove 
the word ``original'', as ``original'' is not relevant when referring 
to the CG-1280 Vessel Renewal Notification Application for Renewal.
    Furthermore, the Coast Guard amends Sec.  67.317 to reflect that 
recreational endorsements can be renewed for 1, 2, 3, 4, or 5 years. 
This amendment is necessary to ensure consistency with regulatory text 
in this section.
    Lastly, the Coast Guard revises Table 1 to Sec.  67.550. As 
recreational vessel CODs will continue to have a multi-year validity 
period, this change is necessary to reflect both the 2022 Act and the 
supporting regulatory text for this section. We deleted occurrences of 
``through December 31, 2021'' as it references a phase-in period that 
has passed. Other formatting updates include separating commercial and 
recreational applications into two categories, moving notes to the end 
of the table, adding dollar signs in the ``Fee'' column, and deleting 
the ``Reference'' column as it is not used to calculate the fee 
amounts. The revised table layout will make it easier to distinguish 
application fees for commercial vessels from those for recreational 
vessels. It will also match the table of fees available to the public 
on NVDC's website. These changes are merely editorial in nature and 
will not change fee amounts or make any other substantive changes.

V. Regulatory Analyses

    We developed this rule after considering numerous statutes and 
Executive orders related to the rulemaking. Below we summarize our 
analyses based on these statutes or Executive orders.

A. Regulatory Planning and Review

    Executive Orders 12866 (Regulatory Planning and Review), as amended 
by Executive Order 14094 (Modernizing Regulatory Review) and 13563 
(Improving Regulation and Regulatory Review), direct agencies to assess 
the costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility.
    The Office of Management and Budget (OMB) has not designated this 
rule a significant regulatory action under section 3(f) of Executive 
Order 12866, as amended by Executive Order 14094. Accordingly, OMB has 
not reviewed this regulatory action. A regulatory analysis follows.

Background

    As discussed in section III., Background, the 2018 Act allowed for 
a phase-in period of 1, 2, 3, 4, or 5 years for CODs, but would have 
required strictly 5-year CODs as of January 1, 2022. However, in 
December of 2021, Congress passed the 2022 Act, which instructed the 
Coast Guard to amend the 2021 final rule to reflect a continuation of 
multi-year issuance for recreational vessel CODs; this effectively 
removed the strict 5-year COD requirement that was established under 
the 2018 Act and was codified under the 2021 final rule.

[[Page 77898]]

The Coast Guard Authorization Act of 2018 and the 2021 Final Rule
    As previously discussed, the 2018 Act and the 2021 final rule would 
have provided COD holders with recreational endorsements the ability to 
request or renew documentation on a multi-year basis between 2019 and 
2021. Beginning in January of 2022, according to the 2021 final rule, 
COD holders with recreational endorsements could have only requested or 
renew documentation for a period of 5 years. To provide clarity and 
assist in the discussion of the impacts of this final rule, a summary 
of the economic impacts for the 2021 final rule follows:

  Table 1--Applicability, Impact and Costs or Cost-Savings of the 2021
                               Final Rule
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           Category                             Summary
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Applicability................  To reflect regulatory changes brought by
                                the 2018 Act (Pub. L. 115-282), which
                                directed the Coast Guard to change the
                                validity period of CODs for recreational
                                vessels to a 5-year option only, after a
                                3-year phase-in period, during which
                                vessel owners could choose 1, 2, 3, 4,
                                or 5 years.
Affected Population..........  162,647 vessels.
Benefits.....................  The restructuring of CODs from an annual
                                renewal to a 5-year renewal period would
                                have reduced industry's annual time
                                burden for submitting CODs applications.
                                In addition, the Government would have
                                benefited due to a reduction in the
                                number of applications processed
                                annually.
Cost savings (in 2022          Estimated annualized cost-savings of
 dollars, 7% discount rate) *.  about $5.9 million to Industry at 7-
                                percent discount rate.
                               Federal Government annualized cost-
                                savings of about $8.4 million at 7-
                                percent discount rate.
                               Total annualized cost-savings of about
                                $14.3 million.
------------------------------------------------------------------------
* Totals may not add due to rounding.

2022 Act
    The primary purpose of this final rule is to harmonize 46 CFR part 
67 with current statutory requirements under the 2022 Act, as it 
pertains to recreational vessel owners who seek CODs on a multi-year 
basis. In effect, this final rule continues the phase-in period 
provision specified under the 2018 Act and the 2021 final rule, while 
removing the 5-year-only COD requirement from the CFR. As such, the 
impacts provided below are the result of the 2022 Act. We provide two 
tables that capture the changes in the CFR and economic impacts from 
the 2022 Act. Table 2 below presents the baseline matrix, which lists 
the changes between this final rule and the current language under the 
CFR, while table 5 summarizes the applicability, impact, costs or cost-
savings, and benefits associated to the 2022 Act.

           Table 2--Baseline Matrix--Changes Between This Multiyear Final Rule and the 2021 Final Rule
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        Subpart              Description of change              Type of change               Economic impact
----------------------------------------------------------------------------------------------------------------
67.163(a)..............  Adds ``1, 2, 3, 4, or'' to    Editorial.......................  No economic impact.
                          the first paragraph (a).
67.163(b)..............  Removes ``an original'' from  Editorial.......................  No economic impact.
                          the second paragraph (b).
67.163(c)..............  Replaces ``A certificate of   Editorial/Economic..............  An estimated cost-
                          documentation for a                                             savings to the public
                          recreational vessel and the                                     of $8.3 million
                          renewal of such a                                               annually in 2022 U.S.
                          certificate shall be                                            dollars, discounted at
                          effective for a 5-year                                          7-percent.
                          period. During the period
                          beginning January 1, 2019,
                          and ending December 31,
                          2021, the owner of a
                          recreational vessel may
                          choose a period of
                          effectiveness of 1, 2, 3,
                          4, or 5 years for such a
                          certificate of
                          documentation for such
                          vessel or the renewal
                          thereof'' with ``A
                          Certificate of
                          Documentation for a
                          recreational vessel and the
                          renewal of such a
                          certificate will be
                          effective for 1, 2, 3, 4,
                          or 5 years for such a
                          Certificate of
                          Documentation for such
                          vessel or the renewal
                          thereof''.
67.317(a)..............  Replaces ``must'' with        Editorial.......................  No economic impact.
                          ``can'' from the first
                          paragraph (a).
67.317(a)..............  Adds ``for a period of ''     Editorial.......................  No economic impact.
                          within the first paragraph
                          (a).
67.317(a)..............  Removes ``every'' from the    Editorial.......................  No economic impact.
                          first paragraph (a).
67.317(a)..............  Adds ``for a period of 1, 2,  Editorial.......................  No economic impact.
                          3, 4, or'' to the first
                          paragraph (a).
67.550.................  Table 1 to 67.550 replaced    Editorial.......................  No economic impact.
                          with revised version,
                          editorial changes only to
                          harmonize with Fee Table
                          from NVDC website.
----------------------------------------------------------------------------------------------------------------

Final Rule Costs
    The fundamental purpose of this final rule is to codify the 2022 
Act; therefore, this final rule does not add any new costs to the 
Government or the public, nor does it impose any new burden to either 
entity.
Final Rule Benefits
    By amending current language in the CFR to reflect the provisions 
and requirements specified under the 2022 Act, the Coast Guard 
harmonizes 46 CFR part 67 with the 2022 Act. Confusion regarding the 
validity period for a recreational vessel COD will be eliminated, as 
the CFR will accurately reflect the law and NVDC policy. See table 3 
below for a summary of impacts of this final rule.

[[Page 77899]]

                    Table 3--Applicability, Impact and Costs or Cost-Savings of the 2022 Act
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                                       Affected
           Description                population             Costs           Cost-savings          Benefits
----------------------------------------------------------------------------------------------------------------
The Coast Guard chooses to adopt  38,927              This final rule     This final rule     The harmonization
 this final rule and continue to   recreational        will not impose     will yield an       in language
 allow COD documentation for 1,    vessels owners      any new costs to    estimated cost-     between the CFR
 2, 3, 4, or 5 years at vessel     and operators of    Government or the   savings to the      and the 2022 Act
 owners' discretion.               at least 5 net      public.             public of $8.3      eliminates
The CFR is amended to reflect      tons who were                           million annually    confusion among
 current statutory language and    issued or renewed                       in 2022 U.S.        the public or any
 practice.                         CODs for 5 years                        dollars,            potentially
                                   in 2022.                                discounted at 7%,   affected entity.
                                                                           by removing the 5-
                                                                           year only COD
                                                                           restriction.
----------------------------------------------------------------------------------------------------------------

Affected Population
    To determine the affected population for the 2022 Act and this 
final rule, it is helpful to first understand the distribution of 
multi-year CODs that vessel owners have been selecting. As noted in 
section III., Background, the NVDC has continued to offer multi-year 
COD expiration dates, which is in line with the 2022 Act. We obtained 
data from the NVDC, which processes vessel COD applications and 
renewals. As seen in table 4 below, this data consists of the number of 
CODs issued each year from 2019 to 2022. Table 6 also displays the 
validity period of CODs issued during this timeframe, ranging from 1, 
2, 3, 4, or 5 years. For example, in 2019, the Coast Guard issued 
165,599 recreational vessel CODs, of which the vast majority, 153,195, 
were 1-year CODs, 6,447 were 2-year CODs, 1,398 were 3-year CODs, and 
so on. We can use this information to track the pattern of consumer 
choices regarding the multi-year COD options.

            Table 4--Cross-Tabulation of Recreational Vessel CODs Issued by Year and Validity Period
----------------------------------------------------------------------------------------------------------------
                                     Total CODs     1 Year      2 Years      3 Years      4 Years      5 Years
               Year                    issued      validity     validity     validity     validity     validity
----------------------------------------------------------------------------------------------------------------
2019..............................      165,599      153,195        6,447        1,398          665        3,894
2020..............................      163,771      148,491        7,497        1,617          632        5,534
2021..............................      158,610      127,851       13,184        3,927        1,768       11,880
2022..............................      143,944       81,776        6,942        2,398        2,021       50,807
----------------------------------------------------------------------------------------------------------------

    We note from table 4 that, as we progress from 2019 to 2022, the 
number of 2,- 3,- and 4-year CODs remains relatively stable and only 
accounts for a small percentage of total recreational vessel CODs 
issued each year. We assume that vessel owners selected these duration 
terms for their CODs because they determined that this was their best 
and preferred choice. However, this trend does not hold for 1-year and 
5-year CODs. We note that, from 2019 to 2022, the trend shifts 
significantly away from 1-year CODs and increases significantly to 5-
year CODs. According to subject matter experts (SMEs), the nearly 5-
fold increase in CODs issued with a validity period of 5 years in 2022 
can be attributed to 46 CFR 67.163, Renewal of endorsement, paragraph 
(a), which states the COD validity period for recreational vessels to 
be 5 years: ``Endorsements on Certificates of Documentation are valid 
for 1 year, except for Recreational Endorsements on Certificates of 
Documentation, which are valid for 5 years.''
    The Coast Guard was mandated by the 2018 Act to implement a 5-year 
COD for recreational vessel owners, followed by a 3-year, multi-year 
COD phase-in period. The 2022 Act mandated that the Coast Guard 
continue to offer the multi-year COD. Therefore, our estimated affected 
population is calculated as the difference in CODs issued to 
recreational vessel owners and operators in 2022 with a validity period 
of 5 years, and the number of CODs issued in 2021 with the same 
validity period, which totals 38,927 (50,807-11,880 = 38,927). This is 
the estimate of recreational vessel owners who could transition off a 
5-year validity period for recreational vessel CODs once this final 
rule is implemented.
2022 Act Costs
    The 2022 Act does not add any new cost to Government or the public. 
None of the requirements of the 2022 Act imposes any additional 
burdens. From a renewal standpoint, recreational vessel owners continue 
to have the choice to renew on a multi-year basis at their discretion, 
consistent with the 2018 Act. The Coast Guard is not amending user fees 
associated with CODs and is continuing with the $26 fee per validity-
year for the COD as previously established.
2022 Act Cost-Savings
    Although the NVDC has continued to process multi-year CODs, the 
NVDC has been receiving complaints from vessel owners that private 
companies have been sending out 5-year-only marketing notices, and that 
those companies could process this documentation for an additional fee. 
The NVDC has noted that these individuals assumed that this was their 
only choice, as 46 CFR part 67 has not been updated to reflect current 
NVDC practices. Customer have complained to the NVDC that outside 
companies were charging them an additional fee to process the 
documentation. The NVDC has noted that the average additional fee that 
these companies charged has been approximately $212.\7\ These same 
customer complaints to the NVDC stated that they only used the outside 
companies because they were under the impression that they had no other 
choice. We use this estimate, multiplied by the affected population 
estimate above, to estimate the annual cost savings that recreational 
vessel owners will incur as we expect these customers to now process 
their documentation directly with NVDC.
---------------------------------------------------------------------------

    \7\ Estimate is based in review of complaints submitted by 
vessel owners to the Better Business Bureau (BBB), https://www.bbb.org/us/ca/chino-hills/profile/ship-register/us-vessel-documentation-inc-1066-850028757/complaints, and information 
provided by SME and the NVDC.
---------------------------------------------------------------------------

    Although the NVDC does not keep track of the number of COD renewals 
requested by third-party companies on

[[Page 77900]]

behalf of individual vessel owners, based on extensive discussions with 
SMEs, the Coast Guard believes that the vast majority of the estimated 
affected population who renewed CODs with a 5-year validity period in 
2022 did so primarily through the use of third-party firms, who, in 
turn, directed customers to the CFR.
    As shown in table 5, the economic impact of the 2022 Act is an 
estimated annual cost-savings of approximately $8.3 million annually in 
2022 U.S. dollars, discounted at 7-percent. This estimate is derived 
from an estimated affected population of 38,927 recreational vessels 
(of at least 5 net tons) owners, multiplied by the $212 fee.

                    Table 5--10-Years Undiscounted and Discounted Cost-Savings to the Public
----------------------------------------------------------------------------------------------------------------
                                                                   Undiscounted
                              Year                                 cost-savings     7% Discount     3% Discount
----------------------------------------------------------------------------------------------------------------
2022............................................................      $8,252,524      $7,712,639      $8,012,159
2023............................................................       8,252,524       7,208,074       7,778,795
2024............................................................       8,252,524       6,736,518       7,552,229
2025............................................................       8,252,524       6,295,811       7,332,261
2026............................................................       8,252,524       5,883,936       7,118,700
2027............................................................       8,252,524       5,499,005       6,911,359
2028............................................................       8,252,524       5,139,257       6,710,057
2029............................................................       8,252,524       4,803,044       6,514,619
2030............................................................       8,252,524       4,488,826       6,324,872
2031............................................................       8,252,524       4,195,165       6,140,653
                                                                 -----------------------------------------------
    Total.......................................................      82,525,240      57,962,275      70,395,704
                                                                 -----------------------------------------------
    Annualized..................................................  ..............       8,252,524       8,252,524
----------------------------------------------------------------------------------------------------------------
* Totals may not sum due to rounding.

2022 Act Benefits
    The 2022 Act preserves consumer choice in selecting a COD-validity 
timeframe, allowing vessel owners to maximize their welfare based on 
their own individualized choice matrix. Finally, confusion regarding 
the validity period for a recreational vessel COD will be eliminated, 
as the CFR will accurately reflect the law and NVDC policy.
Alternatives
    As stated in the Summary and regulatory text, the 2022 Act is a 
legislatively mandated and self-executing law promulgated by Congress. 
Hence, the Coast Guard does not have any discretionary action upon its 
enactment. The Coast Guard is promulgating this final rule to ensure 
that CFR regulations concur and comply with the 2022 Act. Therefore, no 
alternatives were considered for this rulemaking.

B. Small Entities

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, 
requires federal agencies to consider the potential impact on small 
entities when they issue a rule after being required to first publish a 
general notice of proposed rulemaking. Under 5 U.S.C. 604(a), a 
regulatory flexibility analysis is not required for this final rule 
under provision in 5 U.S.C. 553(b)(B), because Section 3511 of the 2022 
Act provides the Coast Guard no discretion in adopting the specific 
timeframes for renewal of recreational vessel CODs. We are not required 
to publish a general notice of a proposed rulemaking; therefore, we did 
not conduct a regulatory flexibility analysis for this rule.

C. Assistance for Small Entities

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

D. Collection of Information

    This rule calls for no new or revised collection of information 
under the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520. The OMB 
Control Number for the Coast Guard's Vessel Documentation collection is 
1625-0027. As this final rule codifies current COD options for 
recreational vessel owners, and we expect no change in the average 
number of annual submissions, there is no change to the OMB-approved 
collection.

E. Federalism

    A rule has implications for federalism under Executive Order 13132 
(Federalism) if it has a substantial direct effect on States, on the 
relationship between the National Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. We have analyzed this rule under Executive Order 13132 and 
have determined that it is consistent with the fundamental federalism 
principles and preemption requirements described in Executive Order 
13132. Our analysis follows.
    It is well settled that States may not regulate in categories 
reserved for regulation by the Coast Guard. It is also well settled 
that all of the categories covered in 46 U.S.C. 3306, 3703, 7101, and 
8101 (design, construction, alteration, repair, maintenance, operation, 
equipping, personnel qualification, and manning of vessels), and any 
other category in which Congress intended the Coast Guard to be

[[Page 77901]]

the sole source of a vessel's obligations, are within the field 
foreclosed from regulation by the States. See United States v. Locke, 
529 U.S. 89 (2000) (finding that the states are foreclosed from 
regulating tank vessels); see also Ray v. Atlantic Richfield Co., 435 
U.S. 151, 157 (1978) (State regulation is preempted where ``the scheme 
of federal regulation may be so pervasive as to make reasonable the 
inference that Congress left no room for the States to supplement it 
[or where] the Act of Congress may touch a field in which the federal 
interest is so dominant that the federal system will be assumed to 
preclude enforcement of state laws on the same subject'' (citations 
omitted)). This rule implements changes made by Congress to the 
comprehensive federal vessel documentation requirements of 46 U.S.C. 
Ch. 121, over which Congress clearly has granted the Coast Guard, via 
delegation from the Secretary, exclusive authority. Therefore, because 
the States may not regulate within these categories, this rule is 
consistent with the fundamental federalism principles and preemption 
requirements described in Executive Order 13132.
    While it is well settled that States may not regulate in categories 
in which Congress intended the Coast Guard to be the sole source of a 
vessel's obligations, the Coast Guard recognizes the key role that 
State and local governments may have in making regulatory 
determinations.

F. Unfunded Mandates

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

G. Taking of Private Property

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

H. Civil Justice Reform

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

I. Protection of Children

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

J. Indian Tribal Governments

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

K. Energy Effects

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

L. Technical Standards and Incorporation by Reference

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

M. Environment

    We have analyzed this rule under Department of Homeland Security 
Management Directive 023-01, Rev. 1, associated implementing 
instructions, and Environmental Planning COMDTINST 5090.1 (series), 
which guide the Coast Guard in complying with the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have 
decided that this action is one of a category of actions that do not 
individually or cumulatively have a significant effect on the human 
environment. A Record of Environmental Consideration supporting this 
determination is available in the docket. For instructions on locating 
the docket, see the ADDRESSES section of this preamble.
    This rule meets the criteria for categorical exclusion L54 and L57 
in Appendix A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev. 1. 
Categorical exclusion L54 pertains to regulations that are editorial or 
procedural. Categorical exclusion L57 pertains to regulations 
concerning documentation of vessels. This rule involves allowing 
recreational vessel owners to select a recreational vessel endorsement 
on a Certificate of Documentation (COD) with a validity of 1, 2, 3, 4, 
or 5 years. This rule is not part of a larger action, and it will not 
result in significant impacts to the human environment. The purpose of 
this final rule is to meet the Congressional mandate contained in 
Section 3511 of the National Defense Authorization Act of 2022.

List of Subjects in 46 CFR Part 67

    Reporting and recordkeeping requirements, Vessels.

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

PART 67--DOCUMENTATION OF VESSELS

0
1. The authority citation for part 67 is revised to read as follows:

    Authority:  14 U.S.C. 664; 31 U.S.C. 9701; 42 U.S.C. 9118; 46 
U.S.C. 2103, 2104, 2107, 12102, 12103, 12104, 12105, 12106, 12113, 
12133, 12139; DHS Delegation 00170.1, Revision No. 01.3.

0
2. Amend Sec.  67.163 by:
0
a. In paragraph (a) introductory text, revising the first sentence.
0
b. In paragraph (b), removing the text ``an original'' and adding, in 
its place, the text ``a''; and
0
c. Revising paragraph (c).
    The revisions reads as follows:

Sec.  67.163  Renewal of endorsement.

    (a) * * * Endorsements on Certificates of Documentation are valid 
for 1 year, except for Recreational Endorsements on Certificates of 
Documentation, which are valid for 1, 2, 3, 4, or 5 years. * * *
* * * * *

[[Page 77902]]

    (c) Requirement for renewal of recreational endorsements. A 
Certificate of Documentation for a recreational vessel and the renewal 
of such a certificate will be effective for 1, 2, 3, 4, or 5 years for 
such a Certificate of Documentation for such vessel or the renewal 
thereof.

Sec.  67.317  [Amended]

0
3. In Sec.  67.317, amend paragraph (a) by removing the text ``must be 
renewed every'' and add, in its place, the text ``can be renewed for a 
period of 1, 2, 3, 4, or''.

0
4. Amend Sec.  67.550 by revising Revise Table 1 to read as follows:

Sec.  67.550  Fee table.

* * * * *

                     Table 1 to Sec.   67.550--Fees
------------------------------------------------------------------------
                        Activity                                Fee
------------------------------------------------------------------------
Commercial Applications:
    COM Initial Certificate of Documentation (COD) (1            $133.00
     Year Only).........................................
    COM Exchange of Certificate of Documentation (COD)             84.00
     (1 Year Only)......................................
    COM Return of Vessel to Documentation (1 Year Only).           84.00
    COM Replacement of Lost or Mutilated COD............           50.00
    COM Approval of Exchange of COD requiring Mortgagee            24.00
     consent............................................
    COM Trade Endorsements:                                        (\1\)
        COM Coastwise Endorsement.......................           29.00
        COM Coastwise Bowaters Endorsement..............           29.00
        COM Fishery Endorsement.........................           12.00
        COM Registry Endorsement........................            None
        COM Recreational Endorsement....................            None
    COM Evidence of Deletion from Documentation.........           15.00
    COM Renewal of Certificate of Documentation (COD) (1-          26.00
     Year Only).........................................
    COM Late Renewal....................................        \2\ 5.00
Recreational Applications:
    REC Initial Certificate of Documentation (COD) (1-        \3\ 133.00
     Year)..............................................
    REC Exchange of Certificate of Documentation (COD)         \3\ 84.00
     (1-Year)...........................................
    REC Return of Vessel to Documentation (COD) (1-Year)       \3\ 84.00
    REC Replacement of Lost or Mutilated COD............           50.00
    REC Approval of Exchange of COD requiring Mortgagee            24.00
     consent............................................
    REC Evidence of Deletion from Documentation.........           15.00
    REC Renewal of Certificate of Documentation (1-Year)           26.00
        2-Year Expiration...............................           52.00
        3-Year Expiration...............................           78.00
        4-Year Expiration...............................          104.00
        5-Year Expiration...............................          130.00
    REC Late Renewal....................................        \2\ 5.00
Waivers:
    Original Build Evidence.............................           15.00
    Bill of Sale Eligible for Filing and Recording......           15.00
Miscellaneous Applications:
    Wrecked Vessel Determination........................          555.00
    New Vessel Determination............................          166.00
    Rebuild Determination--Preliminary or Final.........          450.00
Filing and Recording:
    Bill of Sale and Instruments in Nature of Bill of           \4\ 8.00
     Sale...............................................
    Mortgages and Related Instruments...................        \4\ 4.00
    Notice of Claim of Lien and Related Instruments.....        \4\ 8.00
Certificate of Compliance:
    Certificate of Compliance (46 CFR Part 68)..........           55.00
Miscellaneous:
    Abstract of Title (CG-1332).........................           25.00
    Certificate of Ownership (CG-1330)..................          125.00
        Attachment for each vessel with same data.......           10.00
    Certified Copy of Recorded Instrument...............            4.00
    Certified Copy of Certificate of Documentation......            4.00
    Copy of instrument or document......................           (\5\)
------------------------------------------------------------------------
\1\ When multiple trade endorsements are requested on the same
  application, only the single highest applicable fee will be charged,
  resulting in a maximum endorsement fee of $29.00. This does not apply
  to recreational endorsements.
\2\ Late renewal fee is in addition to the cost of the endorsement
  sought.
\3\ 2-5 Year Expiration (Additional Fee Required--$26.00/year).
\4\ Per page.
\5\ Fees will be calculated in accordance with 6 CFR part 5, subpart A.

    Dated: November 6, 2023.
W.R. Arguin,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Prevention 
Policy.
[FR Doc. 2023-25024 Filed 11-13-23; 8:45 am]
BILLING CODE 9110-04-P