Document ID: USCG-2018-0493-0001
Agency: uscg
Document Type: Proposed Rule
Title: Person in Charge of Fuel Transfers
Posted Date: 2019-08-14T04:00Z

[Federal Register Volume 84, Number 157 (Wednesday, August 14, 2019)]
[Proposed Rules]
[Pages 40329-40344]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17457]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 155

[Docket No. USCG-2018-0493]
RIN 1625-AC50

Person in Charge of Fuel Transfers

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking; request for comments.

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

SUMMARY: The Coast Guard is proposing to amend the requirements 
regulating personnel permitted to serve as a person in charge (PIC) of 
fuel oil transfers on an inspected vessel by adding the option of using 
a letter of designation (LOD) in lieu of a Merchant Mariner Credential 
(MMC) with a Tankerman-PIC endorsement. Thousands of towing vessels are 
currently transitioning from being uninspected vessels to becoming 
inspected vessels. This proposal would allow a PIC currently using the 
LOD option on one of those uninspected vessels to continue to use that 
option to perform the same fuel oil transfers once the vessel receives 
its initial Certificate

[[Page 40330]]

of Inspection. Under this proposal, obtaining a MMC with a Tankerman-
PIC endorsement would become optional for PICs of fuel oil transfers on 
inspected vessels.

DATES: Comments and related material must be received by the Coast 
Guard on or before October 15, 2019. Comments sent to the Office of 
Management and Budget (OMB) on collection of information must reach OMB 
on or before October 15, 2019.

ADDRESSES: You may submit comments identified by docket number USCG-
2018-0493 using the Federal eRulemaking Portal at https://www.regulations.gov. See the ``Public Participation and Request for 
Comments'' portion of the SUPPLEMENTARY INFORMATION section for further 
instructions on submitting comments.
    Collection of information. Submit comments on the collection of 
information discussed in section VI. D of this preamble both to the 
Coast Guard's online docket and to the Office of Information and 
Regulatory Affairs (OIRA) in the White House Office of Management and 
Budget using one of the following two methods:
     Email: dhsdeskofficer@omb.eop.gov.
     Mail: OIRA, 725 17th Street NW, Washington, DC 20503, 
attention Desk Officer for the Coast Guard.

FOR FURTHER INFORMATION CONTACT: For information about this document 
call or email Cathleen Mauro, Office of Merchant Mariner Credentialing 
(CG-MMC-1), Coast Guard; telephone 202-372-1449, email 
Cathleen.B.Mauro@uscg.mil.

SUPPLEMENTARY INFORMATION: 

Table of Contents for Preamble

I. Public Participation and Request for Comments
II. Abbreviations
III. Basis and Purpose
IV. Background
    A. Requirements in 33 CFR Part 155 for Person in Charge of Fuel 
Oil Transfers
    B. Cargo-Based Origins of Requirements To Obtain MMC Tankerman-
PIC Endorsement
    C. Different Standards Are Appropriate for Fuel Oil Transfers
    D. Federal Advisory Committee Recommendations
V. Discussion of Proposed Rule
    A. Proposed Amendments to Sec.  155.710(e)
    B. Proposed Amendments to Sec.  155.715
VI. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates
    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. Public Participation and Request for Comments

    The Coast Guard views public participation as essential to 
effective rulemaking and will consider all comments and material 
received during the comment period. Your comment can help shape the 
outcome of this rulemaking. If you submit a comment, please include the 
docket number for this rulemaking, indicate the specific section of 
this document to which each comment applies, and provide a reason for 
each suggestion or recommendation.
    We encourage you to submit comments through the Federal eRulemaking 
Portal at https://www.regulations.gov. If your material cannot be 
submitted using https://www.regulations.gov, call or email the person 
in the FOR FURTHER INFORMATION CONTACT section of this proposed rule 
for alternate instructions. Documents this proposal mentions as being 
available in the docket, and all public comments, will be available in 
our online docket at https://www.regulations.gov, and can be viewed by 
following that website's instructions. Additionally, if you go to the 
online docket and sign up for email alerts, you will be notified when 
comments are posted or if a final rule is published.
    We accept anonymous comments. All comments received will be posted 
without change to https://www.regulations.gov and will include any 
personal information you have provided. For more about privacy and the 
docket, visit https://www.regulations.gov/privacyNotice.
    We do not plan to hold a public meeting but you may submit a 
request for one using one of the methods specified under ADDRESSES. 
Please explain why you believe a public meeting would be beneficial. If 
we determine that one would aid this rulemaking we will issue a Federal 
Register notice to announce the date, time, and location of such a 
meeting.

II. Abbreviations

CFR Code of Federal Regulations
COI Certificate of Inspection
CPI-U Consumer Price Index for all Urban Consumers
DHS Department of Homeland Security
DOI Declaration of inspection
FR Federal Register
GSA General Services Administration
LOD Letter of designation
MERPAC Merchant Marine Personnel Advisory Committee
MISLE Marine Information for Safety and Law Enforcement
MMC Merchant Mariner Credential
MPH Miles per hour
NPRM Notice of proposed rulemaking
OMB Office of Management and Budget
PIC Person in charge
PWSA Ports and Waterways Safety Act
Sec.  Section
TSAC Towing Safety Advisory Committee
U.S.C. United States Code

III. Basis and Purpose

    The Coast Guard's authority under Subtitle II and Chapter 700 of 
Title 46 United States Code, specifically 46 U.S.C 3306 and 70034,\1\ 
allows us to establish and amend regulations for a person in charge 
(PIC) of fuel oil transfers. This proposed rule is authorized by 
Subtitle II provisions to regulate lightering (46 U.S.C. 3715) and 
personnel qualifications for all inspected vessels, including nontank 
vessels (46 U.S.C. 3703), and by 46 U.S.C. chapter 700 provisions 
regarding waterfront safety, including protection of navigable waters 
and the resources therein (46 U.S.C. 70011).
---------------------------------------------------------------------------

    \1\ Authority in 46 U.S.C. 70034 was formerly reflected in 33 
U.S.C. 1231. On December 4, 2018, the Frank LoBiondo Coast Guard 
Authorization Act of 2018, Public Law 115-282, was enacted. Its 
section 401 titled ``Codification of Ports and Waterways Safety 
Act,'' restated the Ports and Waterways Safety Act (PWSA) 
authorities in an enacted title of the U.S. Code. Specifically, it 
added chapter 700, Ports and Waterways Safety, to Title 46. Also, 
its section 402 repealed the PWSA (Pub. L. 92-340), as amended, 
which had been reflected in 33 U.S.C. 1221-1231, 1232-1232b.
---------------------------------------------------------------------------

    This proposed rule would allow an alternative method of meeting 
requirements for personnel allowed to serve as the PIC of a fuel oil 
transfer on an inspected vessel. In 1998, the Coast Guard established 
the option of using a letter of designation (LOD) for uninspected 
vessels in 33 CFR 155.710(e)(2).\2\ The LOD designates the holder as a 
PIC of the transfer of fuel oil and states that the holder has received 
sufficient formal instruction from the operator or agent of the vessel 
to ensure his or her ability to safely and adequately carry out the 
duties and responsibilities of the PIC.\3\ The same year we created the 
LOD option, we stated that the formal instruction required by this 
option should ensure that personnel acting as PICs of fuel oil 
transfers have the ability to safely and adequately carry out their 
duties and

[[Page 40331]]

responsibilities while minimizing the risks of pollution from fuel oil 
spills.\4\
---------------------------------------------------------------------------

    \2\ See Qualifications for Tankermen and for Persons in Charge 
of Transfers of Dangerous Liquids and Liquefied Gases final rule (63 
FR 35822, July 1, 1998).
    \3\ 33 CFR 155.715.
    \4\ 63 FR 35822, 35825, July 1, 1998.
---------------------------------------------------------------------------

    Thousands of towing vessels are currently transitioning from being 
uninspected vessels to becoming inspected vessels.\5\ While this 
proposed rule is not limited to towing vessels, it would allow a PIC 
currently using the LOD option on one of those uninspected towing 
vessels to continue to use that option to perform the same fuel oil 
transfers once the vessel becomes an inspected vessel. Both Executive 
Orders 12866 (Regulatory Planning and Review) and 13777 (Enforcing the 
Regulatory Reform Agenda) direct us to eliminate unnecessary regulatory 
burdens.\6\ We believe that the LOD option provides a level of safety 
and protection for fuel oil transfers equivalent to the Tankerman-PIC 
option, while eliminating the burden of obtaining and maintaining a 
Merchant Mariner Credential (MMC). As a result, the Coast Guard is 
proposing to add this LOD alternative so that individuals on inspected 
vessels would have an option that is currently only available to 
individuals on uninspected vessels.
---------------------------------------------------------------------------

    \5\ See 46 CFR 136.202, and discussion in Regulatory Analysis 
regarding the number of towing vessel making this transition.
    \6\ See Section 1(b)(11) and Section 1, respectively.
---------------------------------------------------------------------------

    This option would be available only for transfers of fuel oil. The 
PIC requirements in 33 CFR 155.710(a), (b) and (f) for vessels 
transferring cargo would remain unchanged.

IV. Background

    The need to issue this proposed rule to eliminate an unnecessary 
burden became more evident after we published the ``Inspection of 
Towing Vessels'' final rule. As towing vessels transition from an 
uninspected to inspected status, fuel transfer operations on thousands 
of towing vessels will now require PICs to have MMCs instead of LODs 
even though fueling operations remain unchanged.\7\ The change in the 
PIC requirement was triggered by the transition to inspected vessels.
---------------------------------------------------------------------------

    \7\ The ``Inspection of Towing Vessels'' final rule established 
46 CFR subchapter M, which requires towing vessels described in 46 
CFR 136.105 to obtain a Certificate of Inspection. When towing 
vessels obtain their COI, their status changes from being an 
uninspected vessel to an inspected vessel, affecting which 
requirements in Sec.  155.710(e) must be met for someone to serve as 
the PIC of a fuel oil transfer. (81 FR 40003, June 20, 2016)
---------------------------------------------------------------------------

    The requirements for a Tankerman PIC endorsement described in 46 
CFR 13.210 include the completion of Coast Guard approved training in 
firefighting and in Tankship Dangerous Liquids or Liquefied Gas as 
appropriate. Training is approved under the requirements in 46 CFR part 
10, subpart D. Formal instruction provided by the owner or operator of 
a vessel does not require review or approval by the Coast Guard prior 
to delivery.
    The Coast Guard compared the requirement to complete approved 
training in order to obtain an MMC with a Tankerman PIC endorsement for 
PICs on inspected vessels and the formal instruction provided on 
uninspected vessels, as a requirement for issuing an LOD on uninspected 
vessels. The Coast Guard could not discern a meaningful difference in 
fueling operations on uninspected towing vessels and inspected vessels 
that require Tankerman-PIC endorsements. As uninspected vessels move to 
becoming inspected vessels their fuel oil transfer operations do not 
change, but the change in the requirement to hold an MMC means the 
individuals conducting the fuel oil transfer must obtain substantially 
more costly training and demonstrate experience with cargo transfers. 
While fuel oil transfers are similar in nature to cargo transfers, they 
cannot be used to demonstrate the service requirements for a Tankerman 
PIC endorsement described in 46 CFR 13.203(b). As a result, the Coast 
Guard is proposing to allow the use of LODs on all inspected vessels. 
The existing Sec.  155.710(e)(1) requirement is overly burdensome on 
personnel engaged in fuel oil transfers on inspected vessels that 
require a Declaration of Inspection (DOI),\8\ and we have no evidence 
that it increases the level of safety of life, environmental 
protection, or protection of property at sea beyond that provided by 
the LOD option.
---------------------------------------------------------------------------

    \8\ Section 156.150(a) requires a DOI before commencing any 
transfer of fuel oil and applies to vessels with a capacity of 250 
barrels or more that engage in the transfer of oil or hazardous 
material on the navigable waters or contiguous zone of the United 
States. This requirement does not apply to public vessels. For 
source of applicability, see Sec.  156.100.
---------------------------------------------------------------------------

A. Requirements in 33 CFR Part 155 for Person in Charge of Fuel Oil 
Transfers

    The regulations in Sec.  155.700 require the designation of a PIC 
for any transfer of fuel oil to, from, or within a vessel with a 
capacity of 250 or more barrels, and Sec.  155.710(e) specifically 
refers to PICs engaged in the transfer of fuel oil requiring a DOI. 
Personnel designated as a PIC through the LOD option described in 33 
CFR 155.715 must receive formal instruction from the operator or agent 
of the vessel to ensure their ability to safely and adequately carry 
out the duties and responsibilities of the PIC. The Coast Guard 
believes this formal instruction, which has been adequate for 
uninspected vessels, is also adequate for inspected vessels. Section 
155.710(e) specifies the qualifications of a PIC for any fuel oil 
transfer requiring a DOI on inspected and uninspected vessels. On 
inspected vessels, the PIC of a fuel oil transfer requiring a DOI must 
hold a valid MMC with either an officer endorsement authorizing service 
\9\ on board the vessel, or a Tankerman-PIC endorsement.
---------------------------------------------------------------------------

    \9\ In our references to an officer endorsement required under 
Sec.  155.710(e), we are referring to an officer endorsement 
authorizing service as a master, mate, pilot engineer, or operator 
on the vessel where the office seeks to serve as a PIC for a fuel 
oil transfer.
---------------------------------------------------------------------------

    Under Sec.  155.710(e)(2), on uninspected vessels, the PIC of a 
fuel oil transfer has the option of either meeting PIC requirements for 
inspected vessels, or being designated as a PIC through an LOD as 
described in 33 CFR 155.715. The LOD must not only designate the person 
as a PIC, but it must also state that the person has received 
sufficient formal instruction from the operator or agent of the vessel 
to ensure his or her ability to safely and adequately carry out the 
duties and responsibilities of the PIC described in 33 CFR 156.120 and 
156.150.

B. Cargo-Based Origins of Requirements To Obtain MMC Tankerman-PIC 
Endorsement

    In 1995, the Coast Guard established the requirements for 
Tankerman-PIC endorsements in 46 CFR part 13, which were developed 
primarily for the transfer of cargo.\10\ These requirements were 
specifically intended to improve the handling of liquid cargoes and 
reduce the risk and severity of spills from tankships. The provisions 
were not necessarily designed for transfers of oil solely used to fuel 
the propulsion or auxiliary machinery of the vessel, but fuel oil 
transfers are subject to these part 13 requirements. The part 13 
training and certification requirements, which include service on 
tankships and completion of an approved course for Tankship Dangerous 
Liquids,\11\ are extensive and appropriate for complex tankship 
operations.
---------------------------------------------------------------------------

    \10\ A 1995 interim rule set out the handling, transfer, and 
transport of oil and certain hazardous liquid cargoes in bulk aboard 
vessels, and at that time the Coast Guard concluded, ``this rule 
will improve the handling, transfer, and transport of these cargoes 
and reduce the risk and severity of spillage from tank vessels.'' 
(60 FR 17134, April 4, 1995). When describing approval of tankerman 
endorsement courses, we noted that the Coast Guard would evaluate 
courses--including simulated transfer of cargo--to determine the 
credit allowed toward meeting the proposed service requirements (60 
FR at 17139).
    \11\ Section 13.201(b)(2) and (4).

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

[[Page 40332]]

C. Different Standards Are Appropriate for Fuel Oil Transfers

    Since 1998, when the Coast Guard established the LOD option, it has 
recognized that not all of the training and service requirements for a 
Tankerman-PIC endorsement were necessary for fuel oil transfers. The 
Coast Guard's successful use of LODs for uninspected vessels reflects 
that service on a tankship, and completing approved training oriented 
toward tankships, are not necessary for non-tankship inspected vessels 
when transferring fuel oil. As a result, in March 2017, the Coast Guard 
issued CG-MMC Policy Letter No. 01-17 titled, ``Guidelines for Issuing 
Endorsements for Tankerman-PIC Restricted to Fuel Transfers on Towing 
Vessels.''
    Under CG-MMC Policy Letter No. 01-17, personnel on towing vessels 
have been relieved of some approved training costs, including travel to 
and from training facilities, and applicable tuition to comply with the 
full Tankerman-PIC requirements in 46 CFR part 13. In addition, CG-MMC 
Policy Letter No. 01-17 relieves the requirement for service experience 
on a tankship. However, under CG-MMC Policy Letter No. 01-17, personnel 
who do not hold an officer endorsement but who seek to be a PIC on an 
inspected towing vessel still need to obtain an MMC with a Tankerman-
PIC endorsement restricted to fuel transfers on towing vessels to 
comply with Sec.  155.710(e). This policy eased some of the 
requirements for obtaining an MMC with a qualifying endorsement for 
inspected towing vessels, but it did not completely relieve the burden 
of obtaining the credential or maintaining the endorsement through the 
renewal process every 5 years and it only addresses inspected towing 
vessels--not other inspected vessels.
    The review of the requirements to obtain an MMC with a Tankerman 
PIC endorsement leading to the development of CG-MMC Policy Letter No. 
01-17 also applies to other categories of inspected vessels 
transferring fuel oil. The requirements in 46 CFR part 13 were 
developed primarily for the transfer of cargo, and the approved 
training and service requirements are not necessary when transferring 
fuel oil. Although our existing requirements for inspected vessels that 
receive oil solely to fuel the propulsion or auxiliary machinery of the 
vessel offer some flexibility by allowing a credentialed officer to act 
as the PIC, in practice this is of limited value because it is a common 
practice for towing vessels to engage in operations such as 
midstreaming--fueling while underway and holding the vessel midstream--
where it is not possible for the officers holding an MMC to serve as 
PIC for the fuel transfer.

D. Federal Advisory Committee Recommendations

    The Coast Guard tasked the Towing Safety Advisory Committee (TSAC) 
\12\ and Merchant Marine Personnel Advisory Committee (MERPAC) \13\ to 
review CG-MMC Policy Letter No. 01-17 and the existing PIC requirements 
for vessel fuel transfers and make recommendations for amendments.
---------------------------------------------------------------------------

    \12\ Issued in June 2016, TSAC Task 16[hyphen]01, 
Recommendations Regarding the Implementation of 46 Code of Federal 
Regulations Subchapter M-Inspection of Towing Vessels, directed TSAC 
to provide ``comments on the implementation of Subchapter M that the 
Committee feels are necessary.'' In its third report in response to 
this task, in December 2017, TSAC issued Report No. 3 that addressed 
the subject of Persons-In-Charge of Towing Vessel Fuel Transfers. A 
copy of this report is available in the docket.
    \13\ Issued in May 2017, MERPAC Task 99, Towing Vessel 
Restricted Tankerman PIC Endorsement, requested MERPAC to review and 
comment on CG-MMC Policy Letter 01-17 and the applicable regulations 
and provide recommendations for amendments, if needed. In October 
2017, MERPAC issued its report, which is available in the docket.
---------------------------------------------------------------------------

    In December 2017, after reviewing CG-MMC Policy Letter No. 01-17 
and existing regulations, TSAC recommended that the Coast Guard amend 
Sec.  155.710(e) so that an LOD can be used by an individual on a 
towing vessel inspected under subchapter M to satisfy the requirements 
for the transfer of fuel oil described in 33 CFR 155.710.
    MERPAC also reviewed CG-MMC Policy Letter No. 01-17 and the 
existing regulations. In October 2017, MERPAC issued a report and 
recommendation that viewed the policy as an appropriate interim 
solution. However, MERPAC did not endorse requiring MMCs for PICs for 
the long term. Instead, MERPAC recommended a regulatory change in which 
all inspected vessels would have the option to satisfy the PIC 
requirement for fuel transfers through either an LOD, as described in 
33 CFR 155.715, or through holding an MMC with an officer or Tankerman-
PIC endorsement.
    The Coast Guard reviewed the recommendations from both TSAC and 
MERPAC, and agreed with MERPAC's broader recommendation that all 
inspected vessels should have the option of using an LOD to satisfy the 
requirement for designating the PIC of fuel transfers.
    Under the LOD option, a PIC's formal instruction is tailored to the 
vessel identified in the LOD and must meet the requirements in Sec.  
155.715. This provides an equivalent level of safety of life, 
environmental protection, or protection of property at sea as the 
current requirement for a PIC on an inspected vessel. Therefore, we are 
proposing to allow the LOD to be used by PICs of fuel oil transfers on 
any inspected vessel. The TSAC and MERPAC recommendations are available 
in the docket for this rulemaking.

V. Discussion of Proposed Rule

    The Coast Guard proposes to amend 33 CFR 155.710(e), which sets 
forth the provisions for the qualifications of the PIC of any fuel oil 
transfer requiring a DOI. The proposal would not change the existing 
requirements for the PIC on uninspected vessels, and the requirements 
for vessels transferring cargo would also remain unchanged. The change 
would provide inspected vessels two options for meeting requirements to 
serve as the PIC of a fuel oil transfer. Vessel operators could comply 
with the current inspected vessel requirement of having a PIC with a 
valid MMC with either an officer or Tankerman-PIC endorsement, or use 
the new option for inspected vessels of designating a PIC with an LOD 
as described in 33 CFR 155.715.

A. Proposed Amendments to Sec.  155.710(e)

    We propose to revise the text of current paragraphs (e)(1) and 
(e)(2) and redesignate them as paragraphs (e)(1)(i) and (e)(1)(ii). We 
would then redesignate the remaining paragraphs in that section and 
amend a reference in the redesignated paragraph regarding tank barges 
to reflect our removal of paragraph (e)(2).
    With respect to MMCs, we would also remove obsolete terminology 
such as merchant mariner ``licenses'' and ``Merchant Mariner 
Documents.'' The Coast Guard ceased issuing those types of documents in 
2009 when we transitioned to the streamlined MMC. Also, we would 
clarify the first sentence of Sec.  155.710(e) by changing ``shall 
verify'' to ``must verify.''

B. Proposed Amendments to Sec.  155.715

    In Sec.  155.715, we would change the reference to Sec.  
155.710(e)(2) so that it refers to Sec.  155.710(e)(1) instead. This 
change would reflect our amendments to Sec.  155.710(e). Also, to 
remove a long-standing conflict of referring to the same letter as both 
``letter of instruction'' and ``letter of designation,'' we would amend 
the reference to a letter of instruction by simply referring to it as 
``the letter referenced in Sec.  155.710(e)(1).''

[[Page 40333]]

    This letter has become known by the title we gave it in the Sec.  
155.715 heading, ``letter of designation.'' Section 155.715 requires 
the letter to designate the holder as a PIC of the transfer of fuel oil 
and to state that the holder has received sufficient formal instruction 
from the operator or agent of the vessel to ensure his or her ability 
to safely and adequately carry out the duties and responsibilities of 
the PIC described in 33 CFR 156.120 and 156.150. Changing our reference 
to it as ``the letter referenced in Sec.  155.710(e)(1)'' would not 
change any of those requirements, but it would make it clear that 
``letter of designation'' is the correct way to refer to the letter 
referenced in Sec.  155.710(e) that must satisfy the requirements of 
Sec.  155.715.

C. Proposed Rule Only Addresses Fuel Oil Transfers, Not LNG Fuel 
Transfers

    This proposed rule would not apply to liquefied natural gas (LNG) 
fuel transfers. Both Sec. Sec.  155.710(e) and 155.715 apply solely to 
the transfer of ``fuel oil.'' Fuel oil means any oil used to fuel the 
propulsion and auxiliary machinery of the ship carrying the fuel.\14\
---------------------------------------------------------------------------

    \14\ As provided in Sec.  155.110, this 33 CFR 151.05 definition 
of ``fuel oil'' applies to Sec. Sec.  155.710 and 155.715.
---------------------------------------------------------------------------

VI. Regulatory Analyses

A. Regulatory Planning and Review

    Executive Orders 13563 (Improving Regulation and Regulatory Review) 
and 12866 (Regulatory Planning and Review) direct agencies to assess 
the costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. Executive Order 13771 (Reducing Regulation and Controlling 
Regulatory Costs) directs agencies to reduce regulation and control 
regulatory costs and provides that ``for every one new regulation 
issued, at least two prior regulations be identified for elimination, 
and that the cost of planned regulations be prudently managed and 
controlled through a budgeting process.''
    The Office of Management and Budget (OMB) has not designated this 
rule a ``significant regulatory action,'' under section 3(f) of 
Executive Order 12866. Accordingly, OMB has not reviewed it. DHS 
considers this rule to be an Executive Order 13771 deregulatory action. 
See the OMB Memorandum titled ``Guidance Implementing Executive Order 
13771, titled `Reducing Regulation and Controlling Regulatory Costs' '' 
(April 5, 2017). Details on the estimated cost savings of this proposed 
rule can be found in the rule's economic analysis below.
    On June 20, 2016, the Coast Guard published an Inspection of Towing 
Vessels final rule.\15\ The Coast Guard estimated the rule would apply 
to more than 5,500 towing vessels that had previously been uninspected 
vessels. That rule established 46 CFR subchapter M, Towing Vessels 
(parts 136 through 144), which requires vessels subject to it to obtain 
a certificate of inspection (COI). The phase-in period for obtaining a 
COI under subchapter M runs from July 20, 2018, to July 20, 2022.\16\
---------------------------------------------------------------------------

    \15\ See 81 FR 40003, June 20, 2016.
    \16\ See 46 CFR 136.202, which calls for 25 percent of the 
vessels to have COIs by July 22, 2019. It also calls for an 
additional 25 percent to obtain COIs for each of the remaining 3 
years of the phase-in period. The final rule was made effective July 
20, 2016, but it delayed implementation of most of its part 140 
operations requirements, part 141 lifesaving requirements, part 142 
fire protection requirements, part 143 machinery and electrical 
systems and equipment requirements, and part 144 construction and 
arrangement requirements until July 20, 2018. See Sec. Sec.  
140.105, 141.105, 142.105, 143.200, and 144.105.
---------------------------------------------------------------------------

    As uninspected vessels subject to the requirements of 33 CFR 
155.710(e)(2), these towing vessels had the flexibility of designating 
a PIC of a fuel oil transfer through an LOD rather than meeting the 
requirement to have a mariner aboard with a valid MMC with an officer 
or Tankerman-PIC endorsement.\17\ When a towing vessel covered by the 
2016 rule (81 FR 40003) obtains a COI, it will become an inspected 
vessel subject to the requirements of 33 CFR 155.710(e)(1) under which 
individuals designated as PIC of a fuel oil transfer must hold an MMC 
with either an officer or Tankerman-PIC endorsement. When exercising 
the option to designate a PIC through an LOD, the cost of providing 
formal instruction as described in 33 CFR 155.715 is borne by vessel 
operating companies; whereas, we are assuming the cost of obtaining the 
approved training for an MMC with a Tankerman-PIC endorsement is borne 
by the individual obtaining the credential, making the MMC requirement 
relatively more expensive for individuals who perform the same function 
in either case. Further, because a Tankerman-PIC endorsement is 
available as a minimum qualification, we do not assume that an 
individual would choose to obtain an officer endorsement as their 
qualification for PIC because a less burdensome option is available. 
The option of obtaining an MMC with endorsements other than a 
Tankerman-PIC, which is the minimum qualification necessary to comply 
with existing regulations, is the choice of the individual. In cases 
where an officer endorsement is used to satisfy the PIC requirement, we 
assume that it is because the individual already holds an MMC with 
other endorsements. The Coast Guard assumes the MMC was obtained in 
order to seek employment as an officer on vessels and serves as a PIC 
as part of their routine duties, rather than obtaining an officer 
endorsement to serve explicitly as PIC. The Coast Guard seeks input on 
the validity of this assumption.
---------------------------------------------------------------------------

    \17\ In previous information collections letters of designation, 
LODs are referred to as letters of instruction (LOIs).
---------------------------------------------------------------------------

    In March 2017, the Coast Guard issued CG-MMC Policy Letter No. 01-
17 titled ``Guidelines for Issuing Endorsements for Tankerman-PIC 
Restricted to Fuel Transfers on Towing Vessels.'' This policy minimized 
the burden of obtaining an MMC with the Tankerman-PIC endorsement 
necessary to serve as a PIC of a fuel oil transfer on an inspected 
towing vessel by allowing persons to obtain an MMC with a Tankerman-PIC 
endorsement restricted to fuel transfers on towing vessels. This policy 
allows those with an existing LOD to use the LOD to satisfy service 
requirements. This proposed rule would allow for an alternative method 
of designating who may serve as the PIC of a fuel oil transfer on an 
inspected vessel by providing the LOD option to inspected vessels that 
was previously only available to uninspected vessels. This would ease 
the economic burden on individuals who would otherwise bear the cost to 
obtain an MMC with a Tankerman-PIC endorsement.
    Section 155.715 of title 33 of the CFR describes the requirements 
for an LOD, including proof that the holder ``has received sufficient 
formal instruction from the operator or agent of the vessel to ensure 
his or her ability to safely and adequately carry out the duties and 
responsibilities of the PIC.'' This formal instruction is less 
burdensome than the approved training required to obtain the Tankerman-
PIC endorsement, including a Coast Guard-approved firefighting course 
and a Coast Guard-approved tankship dangerous liquids course.\18\ This 
deregulatory action relieves individuals of the cost of obtaining and 
renewing an MMC while allowing continued operation of vessels during

[[Page 40334]]

fuel oil transfers. The individuals expected to take advantage of this 
deregulatory action are the same individuals currently serving as a PIC 
through the use of an LOD on an uninspected towing vessel. While the 
inspection status of the vessels in the baseline population changes, we 
do not expect the fuel oil transfer operations on those vessels to 
change. Therefore we assume that the baseline risk of fuel oil 
transfers on towing vessels remains the same.
---------------------------------------------------------------------------

    \18\ 46 CFR 13.201--Original application for Tankerman-PIC 
endorsement.
---------------------------------------------------------------------------

    This deregulatory action would modify the text of 33 CFR 155.710 to 
specify that inspected vessels would also have the flexibility of 
designating a PIC of a fuel oil transfer through an LOD rather than 
meeting the requirement to have a mariner aboard with a valid MMC with 
an officer or Tankerman-PIC endorsement. This is the only change to 
Sec.  155.710, as the requirements for an LOD remain the same.

                       Table 1--Summary of Impacts
------------------------------------------------------------------------
           Category                             Summary
------------------------------------------------------------------------
Applicability................  Extend the LOD option described in 33 CFR
                                155.710(e)(2) to inspected vessels for
                                fuel oil transfers. This would allow PIC
                                designation to be fulfilled by an LOD
                                rather than an MMC with an officer or
                                Tankerman-PIC endorsement.
Affected Population..........  The 11,480 individuals on 5,740 vessels
                                that transfer fuel oil and that have a
                                capacity to carry at least 250 barrels
                                or that receive fuel oil from a vessel
                                with a capacity to carry at least 250
                                barrels.
Cost Savings (2018 $           10-year period of analysis: $250,384,488,
 Discounted at 7%).             Annualized: $35,649,118.
------------------------------------------------------------------------

Affected Population
    (1) Vessel Population.
    Section 155.700 of 33 CFR requires each owner or operator of a 
vessel with a capacity of 250 barrels or more that engages in the 
transfer of fuel oil on the navigable waters or contiguous zone of the 
United States to designate the PIC of each transfer of fuel oil to or 
from the vessel. The affected population for this deregulatory action 
is a subset of all inspected vessels subject to the PIC requirements in 
33 CFR 155.710(e)(1). The recent change from uninspected to inspected 
status makes subchapter M vessels uniquely impacted by the MMC 
requirement. The Coast Guard is not aware of other inspected vessel 
populations that would likely make use of this rule.
    The vessel types identified as the affected population in the 
subchapter M rule are the same types identified under this rule. Since 
inspections started in 2018, more vessels have been identified, with a 
current population of 5,740. There are still difficulties identifying a 
steady population since inspections are ongoing through year 2022, 
during which Coast Guard is able to identify previously unencountered 
vessels and vessels not subject to subchapter M that were previously 
thought to be.\19\
---------------------------------------------------------------------------

    \19\ Several vessel types are currently incorrectly marked as 
Subchapter M in the Marine Information for Safety and Law 
Enforcement (MISLE) database, including harbor assist, emergency 
assist, passenger barges, and non-self-propelled towing vessels. For 
a list of vessels that are not included in subchapter M 
applicability, see 46 CFR 136.105.
---------------------------------------------------------------------------

    Not all of the 5,740 affected vessels will become inspected vessels 
(obtain their COI) at the same time. As of June 2019, there are 766 
inspected towing vessels under subchapter M.\20\ That number will 
continue to increase but is subject to change as inspections are 
completed. Table 2 below lists the number of inspections completed or 
expected to be completed in each year of the phase-in period.\21\ For 
the purpose of this analysis, the first effective year will be 2020. We 
will not count cost savings for vessels that already obtained their COI 
in 2018 and 2019 because we assume they would already need individuals 
with MMCs to continue operations.
---------------------------------------------------------------------------

    \20\ Monthly numbers of inspections completed from July 2018 
through June 2019 provided on June 27, 2019 by the National Towing 
Vessel Coordinator of the Office of Commercial Vessel Compliance.
    \21\ Projected inspections provided by the Office of Commercial 
Vessel Compliance, June 27, 2019. A total of 1,236 inspections are 
expected to be completed by the end of 2019, with 253 already 
completed in 2018, and 513 already completed as of June 2019. 
Another 470 are projected before the end of 2019 for a total of 983 
to be completed in 2019. The office expects a surge of inspections 
in 2020 because all single vessel companies will have to obtain a 
COI for their vessel by July 2020. In addition the inspections 
originally scheduled during the government shutdown of early 2019 
were rescheduled as soon as possible.

       Table 2--Projection of Subchapter M Vessels Obtaining a COI
------------------------------------------------------------------------
                                                Total  subchapter M
        Year               New COIs              inspected  vessels
------------------------------------------------------------------------
        2018                   253                            253
        2019                   983                          1,236
        2020                 2,031                          3,267
        2021                 1,236                          4,503
        2022                 1,237                          5,740
------------------------------------------------------------------------

    In the case of towing vessels, excluding a vessel from the 
population based on fuel capacity is unreliable because a vessel with a 
smaller (under 250 barrels) capacity may obtain fuel oil from a larger 
(250 or more barrels) vessel causing both to need a PIC to initiate a 
fuel oil transfer between the vessels. Section 156.120(s) requires a 
PIC at the transferring and receiving ends, and Sec.  156.115 states 
that no person may serve as PIC on both ends unless authorized by the 
captain of the port.
    The Coast Guard does not know if a given vessel with a capacity of 
less than 250 barrels will receive fuel from a vessel with a capacity 
of 250 or more barrels of fuel oil. Therefore, we assume that vessels 
with a capacity under 250 barrels may sometimes be required to have a 
designated PIC when transferring fuel oil with vessels with a larger 
capacity based on the requirements in Sec.  156.120(s). The number of 
fuel oil transfers between large- (250 or more barrels) and small- 
(under 250 barrels) capacity vessels is unknown, but the Coast Guard 
assumes it to be a significant amount.
    (2) Affected Individuals.
    To estimate the impact of this deregulatory action, we must first 
establish a baseline of what the world would look like if no 
deregulatory action was taken. In this case, the baseline assumes that 
all newly inspected subchapter M vessels would use individuals with 
MMCs to serve as the PIC for fuel oil transfers. Any cost savings from 
this rule stem from the utilization of an LOD to qualify as PIC for 
fuel transfers and thus the avoided costs of obtaining MMCs strictly 
for the purpose of being qualified as PIC of a fuel oil transfer.
    Each vessel from the affected population is assumed to have at 
least two individuals able to serve as a PIC to ensure that at least 
one of them is available for duty at any point in a 24-

[[Page 40335]]

hour period.\22\ Because a PIC cannot serve on more than one vessel at 
a time (unless authorized by the captain of the port), the vessel 
population can be used as an accurate basis for the number of PICs 
needed. From the population of 5,740 vessels, each carrying two PICs, 
we achieve an affected population of individuals equal to 11,480. The 
population of 5,740 becomes constant in Year 3 of the analysis period 
or in 2022 and thereafter, once all affected vessels are inspected.
---------------------------------------------------------------------------

    \22\ Information collection request (ICR), ``Waste Management 
Plans, Refuse Discharge Logs, and Letters of Instruction for Certain 
Persons-in-Charge (PIC) and Great Lakes Dry Cargo Residue 
Recordkeeping'' OMB control number 1625-0072.
---------------------------------------------------------------------------

    The Coast Guard assumes that as vessels obtain their COI, 
individuals will get original MMCs to serve as the PIC of fuel oil 
transfers on those vessels. The Coast Guard uses a turnover rate of 30 
percent each year, and assumes that any mariner lost to turnover in a 
given year is replaced by a mariner with an original MMC in order to 
maintain a stable population of mariners able to serve the total 
population of active vessels.\23\ Further, it is necessary to track the 
length of service to determine when mariners would be required to renew 
their MMC at 5 years of service as the cost of renewal is significantly 
less than the cost of obtaining an original MMC.\24\ We request comment 
on our assumption of a 30 percent turnover rate.
---------------------------------------------------------------------------

    \23\ We obtained the 30 percent turnover rate from an OMB-
approved ICR (OMB Control Number 1625-0072), which we updated as 
part of a periodic renewal in 2018.
    \24\ An MMC is valid for a term of 5 years from the date of 
issuance. Per 46 CFR 10.205(a).
---------------------------------------------------------------------------

    Two estimates are central to estimating cost savings: First, the 
number of individuals expected to obtain an original MMC in each year; 
and second, the number of individuals expected to renew their MMC in 
each year beginning in Year 4. An original MMC must be renewed every 5 
years, such that an MMC originally obtained in 2018 would be renewed in 
2023. While we do not count cost savings for original MMCs obtained 
before 2020, we do count cost savings for avoided renewals of those 
MMCs since the renewal would occur after the affective year of 2020. 
The total numbers for these two estimates are listed below in table 3 
in the columns labeled ``Total new MMCs'' and ``Renewals.''

                                              Table 3--Summary of Affected Population of the Proposed Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  Total                                 Original     Original
            Calendar year                  Effective year        affected   MMCs needed    New COIs    MMCs from    MMCs from    Total new     Renewals
                                                                 vessels                                new COIs     turnover       MMCS
--------------------------------------------------------------------------------------------------------------------------------------------------------
2018................................  .......................          253          506          253          506            0          506            0
2019................................  .......................        1,236        2,472          983        1,966          152        2,118            0
2020................................  Year 1.................        3,267        6,534        2,031        4,062          742        4,804            0
2021................................  Year 2.................        4,503        9,006        1,236        2,472        1,960        4,432            0
2022................................  Year 3.................        5,740       11,480        1,237        2,474        2,702        5,176            0
2023................................  Year 4.................        5,740       11,480            0            0        3,444        3,444          121
2024................................  Year 5.................        5,740       11,480            0            0        3,444        3,444          508
2025................................  Year 6.................        5,740       11,480            0            0        3,444        3,444        1,153
2026................................  Year 7.................        5,740       11,480            0            0        3,444        3,444        1,064
2027................................  Year 8.................        5,740       11,480            0            0        3,444        3,444        1,243
2028................................  Year 9.................        5,740       11,480            0            0        3,444        3,444          827
2029................................  Year 10................        5,740       11,480            0            0        3,444        3,444          827
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: This table does not contain totals because the values in the columns are not additive. The columns merely show the affected population annually
  and should not be used for summation.

    The ``Total new MMCs'' column equals the number of individuals who 
are newly credentialed each year due to vessels obtaining COIs and 
individuals who are newly credentialed to replace those who left in the 
previous year. This is the sum of the columns ``Original MMCs from new 
COIs'' and ``Original MMCs from turnover.'' In Year 1 (2020), there are 
4,062 original MMCs from new COIs and 742 original MMCs from turnover 
in 2019, for a total of 4,804 original MMCs. The 742 original MMCs from 
turnover account for 30 percent of the total number of 2,472 MMCs 
needed in 2019. In Year 2 (2021), there are 4,432 total new MMCs--2,472 
are due to new COIs and 1,960 are from turnover in the first year. The 
1,960 new MMCs due to turnover in the first year account for 30 percent 
of the 6,534 total MMCs needed for that year.
    We calculate renewals by multiplying the total number of original 
MMCs in a given starting year by the probability that an individual 
would still be employed as a PIC after five years. Where ((1-
0.30)[supcaret](5-1) = (0.7[supcaret]4) is the probability of 
remaining, (0.7) given a turnover rate of 0.3, compounded for each year 
after the first year of having the MMC in the 5 years before renewal. 
For Year 4, this is equivalent to 121 = [506 x (0.7[supcaret]4)]. For 
Year 5, this is equivalent to 508 = [2,118 x (0.7[supcaret]4)]. For 
Year 6, this is equivalent to 1,153 = [4,804 x (0.7[supcaret]4)]. For 
Year 7, this is equivalent to 1,064 = [4,432 x (0.7[supcaret]4)]. For 
Year 8, this is equivalent to 1,243 = [5,176 x (0.7[supcaret]4)]. For 
Year 9 and all subsequent years, renewals become 827 = [3,444 x 
(0.7[supcaret]4)].
Cost Savings
    Cost savings come from the forgone cost to individuals of obtaining 
and renewing an MMC. For towing vessels that only recently became 
inspected vessels, the cost of an MMC for the sole purpose of serving 
as PIC of a fuel oil transfer is a new burden. Not all of the 
individuals impacted by the 2016 towing vessel final rule have obtained 
an MMC yet.\25\ The cost savings for this deregulatory analysis assumes 
that the cost PICs would save for an MMC is comprised of two elements: 
(1) PICs who obtained an MMC but would no longer need to renew it; and 
(2) PICs who avoid getting an MMC altogether. The avoided cost includes 
the evaluation and issuance fees for an MMC, the tuition and travel 
expenses associated with the required approved training, and the 
expense of meeting the MMC renewal requirements every 5 years.
---------------------------------------------------------------------------

    \25\ 81 FR 40003.
---------------------------------------------------------------------------

    Based on the requirement in 33 CFR 155.715 for the operator or 
agent of a vessel to ensure the holder of an LOD has received formal 
instruction to ensure their ability to carry out the

[[Page 40336]]

duties of a PIC, the Coast Guard assumes that companies utilizing an 
LOD would provide the formal instruction. All those companies already 
utilizing an LOD while their vessels are uninspected would already have 
the capacity to provide the formal instruction required for the holder 
of an LOD on an inspected vessel after this rule; therefore, we 
estimate companies who employ PICs would not incur additional costs 
(and subsequently cost savings) as a result of the requirements of this 
proposed rule. The Coast Guard requests comments from the public on 
whether or not your company, who provides formal instruction for the 
purpose of a PIC obtaining an LOD, would incur costs from this proposed 
rule.
    The costs to individuals stem from the requirements to obtain an 
MMC with a Tankerman-PIC endorsement as described in 46 CFR 13.201. 
These requirements include completion of Coast Guard-approved courses 
in both firefighting and tankship Dangerous Liquids. As of May 2019, 
the average cost of a Basic Fire Fighting course is $731.31 and ranges 
in length of 2 to 5 days depending on whether it is offered as a 
separate module or as part of the International Convention on Standards 
of Training, Certification, and Watchkeeping for Seafarers Basic 
Training. We assume an average course length of 27 hours, which would 
require 4 days of training. Similarly, the average cost of a Dangerous 
Liquids course is $985.62 with almost all offerings being 5 days in 
duration with an average of 38 hours of training. The length of the 
training in days assumes an 8-hour day, and that any part of an 
additional day would be considered a full day's opportunity cost in 
order to account for travel (that is, a mariner would not be able to 
leave training at noon and return to work). Because very few of the 
training facilities offer both courses--and none of the training 
facilities offer the courses concurrently--mariners would need to 
schedule each training course separately. See table 4 below for the 
summary of course costs.

                                          Table 4--Average Course Costs
----------------------------------------------------------------------------------------------------------------
                                                                                   Length (days
                     Course                           Tuition      Length (days)     rounded)     Length (hours)
----------------------------------------------------------------------------------------------------------------
Basic Fire Fighting.............................         $731.31            3.27               4              27
Dangerous Liquids...............................          985.62            4.80               5              38
                                                 ---------------------------------------------------------------
    Summary.....................................        1,716.93            8.07               9              65
----------------------------------------------------------------------------------------------------------------

    In addition, 46 CFR 10.219 prescribes the fees for obtaining an MMC 
with a Tankerman-PIC endorsement. This includes an evaluation fee of 
$95 and an issuance fee of $45. Every 5 years there is a cost to renew 
the credential with the endorsement, which includes a $50 evaluation 
fee and a $45 issuance fee.\26\ For the original issuance and renewal, 
there is a security screening expense of $125.25.\27\
---------------------------------------------------------------------------

    \26\ From 46 CFR 10.219(a), Table 1--Fees. Using column 
``Evaluation then the fee is . . .'' and rows ``Original endorsement 
for ratings other than qualified ratings'' and ``Renewal endorsement 
for ratings other than qualified ratings.''
    \27\ Transportation Security Administration 30-Day notice. 
[Docket No. TSA-2006-24191] Revision of Agency Information 
Collection Activity Under OMB Review: Transportation Worker 
Identification Credential (TWIC[supreg]) Program (82 FR 14521, March 
21, 2017).
---------------------------------------------------------------------------

    The Coast Guard assumes varying modes of travel for mariners 
getting to and from approved training based on the distribution of 
travel modes derived in the Vessel Security Officer (VSO) Interim 
Rule.\28\ The percentages below in table 5 reflect the same percentages 
from this rule.\29\ In further analysis, we use the average cost per 
mariner, weighted by the distribution of travel type.\30\ We estimate 
the total travel cost of the for mariners to be about $102,837,070, 
undiscounted. We estimate the average travel cost for a mariner to be 
about $8,958, undiscounted.
---------------------------------------------------------------------------

    \28\ 73 FR 29060, May 20, 2008, ``Implementation of Vessel 
Security Officer Training and Certification Requirements-
International Convention on Standards of Training, Certification and 
Watchkeeping for Seafarers, 1978, as Amended'' rule corrected June 
17, 2008 (73 FR 34190).
    \29\ See Table 4.--TOTAL NATIONAL SHARE OR PERCENTAGE OF--Total 
National Share of Percentage of VSOs THAT WILL COMMUTE, DRIVE/LODGE, 
AND FLY/LODGE That Will Commute, Drive/Lodge, and Fly/Lodge in 73 FR 
29060, 29065.
    \30\ We use the average cost because the distribution in travel 
does not change in any given year. If the actual locations of 
individuals used to develop the baseline was known, then we could 
base the distribution on actual travel. However, this information is 
not known and could not be known for every individual in each year.

                              Table 5--Distribution of Travel Costs for Individuals
----------------------------------------------------------------------------------------------------------------
                                                                                     Affected
                        Mode of transport                          Distribution       mariner       Cost  (2018
                                                                        (%)         population         USD)
----------------------------------------------------------------------------------------------------------------
Commute.........................................................           26.50           3,042     $27,072,685
Drive/Lodge.....................................................           16.70           1,917      15,590,931
Fly/Lodge.......................................................           56.80           6,521      60,173,453
                                                                 -----------------------------------------------
    Total.......................................................             100          11,480     102,837,070
                                                                 -----------------------------------------------
        Average Cost per Mariner................................  ..............  ..............           8,958
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.

    In table 6, we show the unit costs that comprise the total costs to 
individuals in table 9. Each method of travel has a different cost, 
while the costs of training courses and MMC applications are the same 
for all travel types. The total cost per mariner includes the fixed 
costs of the two approved training courses and travel costs. As travel 
costs are highly

[[Page 40337]]

variable, we obtained the most recent cost figures for travel and 
lodging, available from either 2017 or 2018, as described in the source 
reference column.
---------------------------------------------------------------------------

    \31\ See 46 CFR 13.120 Renewal of tankerman endorsement.

                                       Table 6--Unit Travel Cost Estimates
                                             [Adjusted to 2018 USD]
----------------------------------------------------------------------------------------------------------------
                  Item                             Unit cost                        Source reference
----------------------------------------------------------------------------------------------------------------
Opportunity cost of applicant time......  $60.66.....................  The total opportunity cost of time is the
                                                                        base wage multiplied by the loaded wage
                                                                        factor to obtain total compensation
                                                                        including non-wage benefits. $39.61 is
                                                                        the mean wage estimate from the 2019
                                                                        National Occupation Employment and Wage
                                                                        Statistics for Captains, Mates, and
                                                                        Pilots of Water Vessels (53-5021).
                                                                        https://www.bls.gov/oes/2018/may/oes535021.htm.
                                                                       The loaded wage factor of (33.11/21.62)
                                                                        is obtained by dividing the total
                                                                        compensation by wages and salaries for
                                                                        full-time transportation workers. These
                                                                        are annual averages of quarterly data
                                                                        series CMU2010000520610D and
                                                                        CMU2020000520610D respectively, obtained
                                                                        from BLS Employer Cost for Employee
                                                                        Compensation. https://www.bls.gov/data/.
Driving Mileage (rate per mile).........  $0.58......................  ``Privately Owned Vehicle Mileage
                                                                        Reimbursement Rates'' from GSA tables
                                                                        published on January 1, 2019. https://www.gsa.gov/travel/plan-book/transportation-airfare-rates-pov-rates/privately-owned-vehicle-pov-mileage-reimbursement-rates.
Non-Commuting Driving Time..............  100 mile/27.08 mph           For a mariner who would drive/lodge to
                                           commuting speed.             the school 100 miles round trip, we
                                                                        divide 100 miles by the average
                                                                        commuting speed of 27.08 miles per hour
                                                                        (mph). We obtained 27.08 mph from the
                                                                        Federal Highway Administration's (FHA)
                                                                        Summary of Travel Trends, 2017. https://www.fhwa.dot.gov/policyinformation/documents/2017_nhts_summary_travel_trends.pdf. pg
                                                                        79.
Round-trip Air-Fare.....................  $346.......................  From the U.S. Department of
                                                                        Transportation (DOT), Bureau of
                                                                        Transportation Statistics (BTS). Average
                                                                        price of a round-trip airfare for 2018
                                                                        in unadjusted dollars. https://www.bts.gov/sites/bts.dot.gov/files/Annual%20Fares%201995-2018.xlsx.
Round-trip Airport Transfer.............  $61.28.....................  We used the cost of a round-trip airport
                                                                        transfer from a Coast Guard interim
                                                                        rule, ``Validation of Merchant Mariners'
                                                                        Vital Information and Issuance of Coast
                                                                        Guard Merchant Mariner's Licenses and
                                                                        Certificates of Registry'', published on
                                                                        January 13, 2006 (71 FR 2154). Figure
                                                                        found in table 4, page 2160. A later
                                                                        figure could not be found so this figure
                                                                        was adjusted for inflation using the GDP
                                                                        deflator factor of 1.23 times the
                                                                        original cost of $50. The round-trip
                                                                        airport transfer cost is based on
                                                                        research of the average private and
                                                                        public transfer costs, including taxi or
                                                                        car rental costs associated with U.S.
                                                                        airports and regional destinations. It
                                                                        is not a mathematical or rigorous
                                                                        estimate, but an average transfer cost
                                                                        based on information available from
                                                                        associations and trade groups, airports,
                                                                        transit authorities, and governments.
Flying Excursion Time...................  16 hours...................  A mariner that would fly/lodge in order
                                                                        to attend a training course or school
                                                                        would incur an opportunity cost of
                                                                        flying. We assume the total air
                                                                        excursion time of 16 hours, equivalent
                                                                        to two days of travel.
Incidentals and Meals (per diem)........  $64.57.....................  Obtained from the Composite of General
                                                                        Services Administration (GSA) domestic
                                                                        per diem rates for meals/incidentals
                                                                        (https://www.gsa.gov/travel/plan-book/per-diem-rates) in training site and REC
                                                                        cities for January 2018. Taxes ARE
                                                                        included in the M&IE rate per FAQ #12.
                                                                        https://www.gsa.gov/travel/plan-book/per-diem-rates/frequently-asked-questions-per-diem#12.
Lodging (per night).....................  $142.16....................  Obtained from the Composite of General
                                                                        Services Administration (GSA) domestic
                                                                        per diem rates for lodging (https://www.gsa.gov/travel/plan-book/per-diem-rates rates) training site, and REC cities for
                                                                        January 2018. Taxes are not
                                                                        automatically included, so lodging taxes
                                                                        and state sales taxes were added to the
                                                                        lodging per diem.
----------------------------------------------------------------------------------------------------------------

    Table 7, ``MMC Costs for Mariners,'' shows how the above unit costs 
for travel and tuition contribute to the total average cost per 
mariner. The average cost of $8,957.93 is for each mariner expected to 
obtain an original MMC. Tuition costs and travel costs do not apply for 
renewal if a mariner served at least 90 days of service during the 
preceding 5 years.\31\ If a mariner cannot fulfill that service 
requirement, we assume that they turnover and must complete the 
requirements for an original MMC. The Coast Guard estimates the average 
travel cost for a mariner that commutes to approved training is about 
$8,899.05. The average travel cost for a mariner that drives and stays 
overnight for approved training is about $8,132.31. Finally, we 
estimate the average travel cost for a mariner that flies and stays 
overnight for approved training to be about $9,228.15. This cost 
analysis uses an average because the distribution of travel is constant 
year to year.

[[Page 40338]]

                                         Table 7--MMC Costs for Mariners
----------------------------------------------------------------------------------------------------------------
                                                                           Training cost by travel mode
           Category                Derivation         Amount     -----------------------------------------------
                                                                     Commuting      Drive/Lodge      Fly/Lodge
----------------------------------------------------------------------------------------------------------------
Tuition.......................  Average price of       $1,716.93       $1,716.93       $1,716.93       $1,716.93
                                 $731.31 for
                                 Basic
                                 Firefighting,
                                 and $985.62 for
                                 Dangerous
                                 Liquids.
MMC Fees......................  $95 evaluation            140.00          140.00          140.00          140.00
                                 fee, $45
                                 issuance fee.
Security Screening Fee........  $125.25.........          125.25          125.25          125.25          125.25
Round-trip Airfare............  $346.00.........          346.00              NA              NA          346.00
Round-trip Airport transfer...  $61.28..........           61.28              NA              NA           61.28
Lodging.......................  $142.16 per             1,279.45              NA        1,279.45        1,279.45
                                 lodging night x
                                 9 lodging
                                 nights.
Commuting Meals & Incidental    $48.43 per diem           435.86          435.86              NA              NA
 Expenses.                       x 9 training
                                 days
                                 (equivalent to
                                 75% of full per
                                 diem).
Non-Commuting Meals &           $64.57 per diem           645.71              NA          645.71          645.71
 Incidental Expenses.            x (7 training
                                 days) + $48.43
                                 x (4 first and
                                 last days of
                                 travel 75% of
                                 total).
Commuting Motor Vehicle Costs.  100-mile commute          522.00          522.00              NA              NA
                                 x $0.58 per
                                 mile x 9
                                 training days.
Non-Commuting Motor Vehicle     100-mile round-            58.00              NA           58.00              NA
 Costs.                          trip x $0.58
                                 per mile.
Training Time (Opportunity      65 hrs. training        3,942.95        3,942.95        3,942.95        3,942.95
 Cost).                          x loaded hourly
                                 wage.
Commuting Driving Time          (100-mile round         2,016.05        2,016.05              NA              NA
 (Opportunity Cost).             trip / 27 mph
                                 commuting
                                 speed) x loaded
                                 hourly wage x 9
                                 days.
One Non-Commuting Driving Time  (100-mile round           224.01              NA          224.01              NA
 (Opportunity Cost).             trip / 27 mph
                                 commuting
                                 speed) x loaded
                                 hourly wage.
One Flying Time (Opportunity    16 hours x                970.57              NA              NA          970.57
 Cost).                          loaded hourly
                                 wage.
                                                 ---------------------------------------------------------------
    Total Cost per Mariner....  ................  ..............        8,899.05        8,132.31        9,228.15
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.

    Table 8, ``Cost Savings to Individuals,'' shows how the 
introduction of newly inspected vessels, and turnover from subsequent 
years, impact costs over a 10-year period of analysis. It should be 
noted that the renewal costs only enter in Year 6, when the first 
cohort of original MMCs from Year 1 would be eligible to renew, given 
turnover in the first 5 years. The affected population in this analysis 
are reflected in the columns ``Original MMCs'' and ``Renewals'' in 
table 10. We showed this population previously in table 3. As shown in 
table 8, the Coast Guard estimates the total discounted costs savings 
to mariners of this deregulatory savings analysis over a 10-year period 
of analysis to be about $249.2 million using a 7-percent discount rate. 
We estimate the annualized cost savings over 10 years to be about $35.5 
million using a 7-percent discount rate.

                                                                              Table 8--Cost Savings to Individuals
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  Total cost                Renewal                      Total
                                                           Effective   Original       of                     fee +     Total annual     annual      Grand total     Grand total     Grand total
                      Calendar year                          year        MMCs      original    Renewals    security     cost of new     cost of     annual cost     annual cost     annual cost
                                                                                     MMC *                 screening       MMCs        renewals                    discounted 7%   discounted 3%
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2018....................................................  ..........         506  ..........  ..........  ..........  ..............  ..........  ..............  ..............  ..............
2019....................................................  ..........       2,118  ..........  ..........  ..........  ..............  ..........  ..............  ..............  ..............
2020....................................................           1       4,804      $8,958  ..........  ..........     $43,030,327  ..........     $43,030,327     $40,215,258     $41,777,016
2021....................................................           2       4,432       8,958  ..........  ..........      39,703,350  ..........      39,703,350      34,678,444      37,424,216
2022....................................................           3       5,176       8,958  ..........  ..........      46,364,469  ..........      46,364,469      37,847,218      42,430,057
2023....................................................           4       3,444       8,958         121         220      30,851,121      26,758      30,877,879      23,556,586      27,434,596
2024....................................................           5       3,444       8,958         508         220      30,851,121     111,994      30,963,114      22,076,273      26,709,055
2025....................................................           6       3,444       8,958       1,153         220      30,851,121     254,024      31,105,145      20,726,672      26,050,069
2026....................................................           7       3,444       8,958       1,064         220      30,851,121     234,384      31,085,505      19,358,490      25,275,360
2027....................................................           8       3,444       8,958       1,243         220      30,851,121     273,707      31,124,828      18,114,933      24,570,226
2028....................................................           9       3,444       8,958         827         220      30,851,121     182,126      31,033,247      16,880,030      23,784,399
2029....................................................          10       3,444       8,958         827         220      30,851,121     182,126      31,033,247      15,775,729      23,091,650
                                                         ---------------------------------------------------------------------------------------------------------------------------------------
    Total...............................................  ..........  ..........  ..........  ..........  ..........  ..............  ..........     346,321,110     249,229,632     298,546,644
        Annualized......................................  ..........  ..........  ..........  ..........  ..........  ..............  ..........  ..............      35,484,693      34,998,774
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.
* This column includes the cost for courses plus travel costs and fees.

    We do not estimate cost savings to owners and operators of vessels 
because we assume that companies operating towing vessels already have 
the capability of providing necessary formal instruction to those 
individuals being issued an LOD since they offered this formal 
instruction prior to their vessels becoming inspected under the 2016 
rule (81 FR 40003). Turnover in owners and operators is expected to be 
stable for the near future, so we do not expect there

[[Page 40339]]

to be new companies that would have to establish new formal instruction 
capabilities.\32\
---------------------------------------------------------------------------

    \32\ Analysis from the 2016 towing vessel final rule found entry 
of 91 vessels and exit of 88 vessels. A subject matter expert 
confirmed that these numbers are similar and that it matches with 
firms' ownership.
---------------------------------------------------------------------------

    Without this deregulatory action, the Coast Guard would need to 
evaluate the MMC applications that would be submitted if an MMC with a 
Tankerman PIC endorsement were still required to serve as a PIC for 
fuel oil transfers. This deregulatory savings analysis accounts for the 
cost savings to the Coast Guard as MMC applications for Tankerman-PIC 
endorsements would no longer require evaluation or issuance. Each 
application takes approximately 55 minutes to process, at a GS-8 loaded 
mean hourly wage rate of $49, for a cost of $44.92 per application.\33\ 
As shown in table 9, over a 10-year period of analysis, the Coast Guard 
would save about $1,402,143 in 2018 dollars, discounted at a 7-percent 
discount rate, from the lower volume of MMC applications. We estimate 
annualized cost savings to the government to be $199,634 using a 7-
percent discount rate.
---------------------------------------------------------------------------

    \33\ Information provided by subject matter expert in the Office 
of Merchant Mariner Credentialing, and corroborated by NMC 
officials. GS-8 mean hourly wage rate is $49 Outside Government Rate 
per Commandant Instruction 7310.1T November 2018.

                                                        Table--9 Cost Savings to the Coast Guard
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Cost of                         Cost of                       Grand total     Grand total
             Effective year                Original MMCs     reviewing       Renewals        reviewing      Grand total     annual cost     annual cost
                                                           original MMC                     renewed MMC     annual cost    discounted 7%   discounted 3%
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.......................................           4,804          $44.92  ..............               $        $215,762        $201,646        $209,477
2.......................................           4,432           44.92  ..............  ..............         199,080         173,884         187,652
3.......................................           5,176           44.92  ..............  ..............         232,480         189,773         212,752
4.......................................           3,444           44.92             121           44.92         160,150         122,178         142,291
5.......................................           3,444           44.92             508           44.92         177,532         126,578         153,141
6.......................................           3,444           44.92           1,153           44.92         206,497         137,598         172,938
7.......................................           3,444           44.92           1,064           44.92         202,492         126,102         164,645
8.......................................           3,444           44.92           1,243           44.92         210,511         122,520         166,180
9.......................................           3,444           44.92             827           44.92         191,835         104,345         147,025
10......................................           3,444           44.92             827           44.92         191,835          97,519         142,743
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................  ..............  ..............  ..............  ..............       1,988,174       1,402,143       1,698,844
                                         ---------------------------------------------------------------------------------------------------------------
        Annualized......................  ..............  ..............  ..............  ..............  ..............         199,634         199,156
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.

Costs Incurred To Prepare Letter of Designation
    While the use of an LOD saves the individual approved training 
costs, the actual letter of designation still takes time to prepare. 
Using the time estimate from the existing collection of information for 
PICs, we assume the preparation of a letter takes approximately 10 
minutes.\34\
---------------------------------------------------------------------------

    \34\ From OMB Control Number 1625-0072 (ICR 201803-1625-007)--
0.167 hours equals approximately 10 minutes from Table 12.3 in 
Appendix A of ICR 201803-1625-007 (OMB Control Number 1625-0072) 
last updated in 2018.
---------------------------------------------------------------------------

    The projected number of LODs used is based on the number of vessels 
becoming inspected and otherwise requiring a credentialed mariner to 
serve as PIC of a fuel oil transfer. The opportunity cost of the time 
to prepare an LOD uses the wage of a compliance officer, with a loaded 
mean hourly wage rate of $53.39, multiplied by the time to prepare the 
LOD ($53.39 x 10 minutes or 0.167 hours), which is approximately 
$8.92.\35\ The opportunity cost for new individuals using an LOD over 
the 10-year analysis period is about $247,287 in 2018 dollars, 
discounted, using a 7-percent discount rate. See table 10 below. We 
estimate the annualized cost to be about $35,208 using a 7-percent 
discount rate.
---------------------------------------------------------------------------

    \35\ $34.86 is the mean hourly wage estimate from the 2018 
National Occupation Employment and Wage Statistics for Compliance 
Officers (13-1041) https://www.bls.gov/oes/2018/may/oes131041.htm. 
The loaded wage factor of ($33.11/$21.62) is obtained by dividing 
the total compensation by wages and salaries for full-time 
transportation workers. These are annual averages of quarterly data 
series CMU2010000520610D and CMU2020000520610D respectively, 
obtained from BLS Employer Cost for Employee Compensation (https://www.bls.gov/data/).

                                       Table 10--Costs of Preparing an LOD
----------------------------------------------------------------------------------------------------------------
                                    Individuals       Cost of      Total annual     Grand total     Grand total
              Year                 needing a new   preparing LOD      cost of       annual cost     annual cost
                                        LOD         per mariner    preparing LOD   discounted 7%   discounted 3%
----------------------------------------------------------------------------------------------------------------
1...............................           4,804           $8.92         $42,827         $40,025         $41,579
2...............................           4,432            8.92          39,515          34,514          37,247
3...............................           5,176            8.92          46,145          37,668          42,229
4...............................           3,444            8.92          30,705          23,425          27,281
5...............................           3,444            8.92          30,705          21,892          26,486
6...............................           3,444            8.92          30,705          20,460          25,715
7...............................           3,444            8.92          30,705          19,122          24,966
8...............................           3,444            8.92          30,705          17,871          24,239
9...............................           3,444            8.92          30,705          16,702          23,533
10..............................           3,444            8.92          30,705          15,609          22,847
                                 -------------------------------------------------------------------------------
    Total.......................  ..............  ..............         343,423         247,287         296,124
                                 -------------------------------------------------------------------------------

[[Page 40340]]

 
        Annualized..............  ..............  ..............  ..............          35,208          34,715
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to independent rounding.

Costs Incurred by the Coast Guard
    The cost incurred by the Coast Guard only includes the time for 
inspectors in the field to review the documentation designating a PIC 
of a fuel oil transfer on board, which takes the same amount of time 
whether an LOD or an MMC is being reviewed since any method used to 
designate a PIC must be immediately available for inspection. We assume 
no cost change to the Coast Guard. Since the LOD is not a credential 
issued by the Coast Guard, and is only verified on board a vessel, 
there is no additional time cost to reviewing LODs.
Net Cost Savings
    Using a perpetual period of analysis, the Coast Guard estimates the 
total annualized cost savings of the proposed rule to be $24,442,840 in 
2016 dollars, using a 7-percent discount rate. The total cost savings 
is the sum of the cost savings to individuals no longer obtaining MMCs, 
shown in table 8, and the time cost savings to the Coast Guard, shown 
in table 9, of no longer reviewing MMCs. Net cost savings are the total 
cost savings minus the costs incurred, shown in table 11. We estimate 
the net cost savings of this proposed rule over a 10-year period of 
analysis to be about $250,384,488 discounted at 7-percent in 2018 
dollars.

                        Table 11--Summary of Net Cost Savings of the Proposed Rule 2018$
----------------------------------------------------------------------------------------------------------------
                                                                       Costs         Net cost       Annualized
                                                   Cost savings      incurred         savings      cost savings
----------------------------------------------------------------------------------------------------------------
Grand Total.....................................    $348,309,284        $343,423    $347,965,861  ..............
Discounted 7%...................................     250,631,775         247,287     250,384,488      35,649,118
Discounted 3%...................................     300,245,488         296,124     299,949,365      35,163,216
----------------------------------------------------------------------------------------------------------------

Alternatives Considered
    (1) MMC with officer or Tankerman-PIC endorsement (No Limited 
Endorsement).
    Continue to require inspected vessels with a fuel oil capacity of 
250 barrels or more--or that obtain fuel oil from a vessel with a fuel 
oil capacity of 250 barrels or more--to have an individual holding an 
MMC with either an officer or Tankerman-PIC endorsement designated as 
the PIC of any fuel oil transfer. Under this alternative, any 
designated PIC of a fuel oil transfer would be required to hold an MMC 
with an officer or Tankerman-PIC endorsement, without a limited 
endorsement for fuel oil transfers.
    The Coast Guard rejected this alternative because there are no cost 
savings associated with it and therefore it would not meet the Coast 
Guard's goal of reducing regulations under E.O. 13771. Individuals 
would still bear the cost of obtaining an MMC, and after a vessel 
receives its COI, individuals previously qualified as PIC through the 
LOD options would not be able to be designated as a PIC until they 
obtain their MMC.
    (2) Continue to Issue Limited Endorsement MMCs with Tankerman-PIC 
Restricted to Fuel Oil Transfers on Towing Vessels.
    No regulatory change would be associated with this alternative. The 
Coast Guard would continue to utilize the CG-MMC Policy Letter 01-17 to 
issue MMC endorsements for Tankerman-PIC Restricted to Fuel Transfers 
on Towing Vessels. Under this continued action alternative, the 
existing policy letter would continue to provide a means for 
individuals on towing vessels previously designated as PIC of a fuel 
oil transfer using an LOD to be issued a limited endorsement Tankerman-
PIC restricted to Fuel Transfers.
    While limited endorsements save individuals the cost of approved 
training courses, such that they only pay the cost of applying for an 
MMC, the Coast Guard must still evaluate the MMC application and issue 
the credentials. These applications take 45 minutes to evaluate at a 
loaded GS-8 wage rate of $49 per hour for a labor cost of about $36.75. 
Over a 10-year period of analysis, we estimate the cost to the 
Government to review these applications to be about $861,027 in 2018 
dollars. In total, the net costs of continuing the letter over a 10-
year period of analysis are about $ $8,984,618 in 2018 dollars using a 
7-percent discount rate. We estimate annualized cost savings to be 
about $1,279,208 using a 7-percent discount rate.
    The Coast Guard rejected this alternative because it provides 
neither a full solution nor long-term alternatives for designating the 
PIC of a fuel oil transfer and it is more costly than the preferred 
alternative. The policy letter only applies to one industry segment, 
and individuals who obtain an MMC according to the policy letter would 
still incur the cost of renewing their credential every 5 years.
    (3) Preferred Alternative--new regulatory action allowing use of 
LODs for inspected vessels.
    Under this alternative, the regulations would be modified to 
provide the option for inspected vessels to designate the PIC of a fuel 
oil transfer utilizing an LOD. Under a new regulatory action, the Coast 
Guard would provide flexibility to all inspected vessels in how they 
designate the PIC of a fuel oil transfer. This is the preferred 
alternative as it relieves individuals who would otherwise not be 
required to have an MMC to obtain and renew a credential, and provides 
flexibility to industries equally.
Conclusion
    The Coast Guard is interested in the potential impacts from this 
rule and we request public comment on these potential impacts. If you 
think that this rule would have a significant economic impact on you, 
your business, or your organization, please submit a comment to the 
docket at the address under ADDRESSES in the rule. In your comment, 
explain why, how, and to

[[Page 40341]]

what degree you think this rule would have an economic impact on you. 
We are especially interested in information on interactions of small 
and large vessels for fuel oil transfers.

B. Small Entities

    Under the Regulatory Flexibility Act, 5 U.S.C. 601-612, we have 
considered whether this proposed rule would have a significant economic 
impact on a substantial number of small entities. The term ``small 
entities'' comprises small businesses, not-for-profit organizations 
that are independently owned and operated and are not dominant in their 
fields, and governmental jurisdictions with populations of less than 
50,000. Below is a threshold analysis of the small entity impacts.
    In lieu of current revenue figures which may be distorted by 
ongoing inspections, for this analysis we use the small entity impact 
analysis of the 2016 Subchapter M rule, which we assume will be closely 
representative of revenues after the inspection period is over. The 
2016 rule's small entity impact analysis used a sample of 304 vessels 
from the population of 5,509.\36\ Of the 304 vessels, about 59 percent 
were owned or operated by a small entity. We assume the same number of 
small entities would be impacted going forward, but will know better 
once inspections are completed and all fleets resume active status. As 
this is a deregulatory action, the majority of impact is cost savings 
to individuals, who do not qualify as small entities. The only impact 
to small entities is the cost imposed to industry as the time cost of 
preparing the letter of designation.
---------------------------------------------------------------------------

    \36\ See 81 FR 40003, June 20, 2016.
---------------------------------------------------------------------------

    The Coast Guard finds the average annual cost to be $75.91 based on 
the known fleet sizes of all towing vessel entities. Ideally, we would 
use the same population used in the cost model to account for turnover, 
but accounting for turnover within each entity is complex. Instead, we 
make the most conservative assumption, which is that entities would 
need to prepare LODs for their entire fleet every year and compare to 
the revenue of the lowest earning fleet. There is no additional initial 
cost, only this annual cost.
    Average annual cost takes the number of vessels in a fleet, times 
the cost of preparing a letter, $8.92, times 2 to account for each of 
the two PICs needed per vessel. This average varies by the number of 
vessels in an entity's fleet, see the distribution below. Note that the 
number of vessels in a fleet does not correlate with company size; a 
small business may have a large fleet or a large business may have a 
small fleet. On average, the cost incurred per entity is $75.91, which 
is on average 0.0152 percent of revenues.\37\
---------------------------------------------------------------------------

    \37\ While fleet size is known for all 1,295 entities covering 
the entire affected population of vessels, revenues are known only 
for a sample of 183 vessels of the original 5,509 vessels, data from 
the original FRFA of Inspection of Towing Vessels final rule (81 FR 
40003). In Table 14, ``Average cost'' is based on the entire 
population of entities, ``average of cost as a % of total revenue'' 
is based only on entities for whom revenue is known.

                                 Table 14-- Average Cost by Fleet Size Category
----------------------------------------------------------------------------------------------------------------
                                                                                                    Average of
          Fleet size category                  Description           Number of     Average cost    cost as % of
                                                                     entities                      total revenue
----------------------------------------------------------------------------------------------------------------
Small_1...............................  Entity with only one                 611          $17.83          0.0011
                                         vessel.
Small_2-5.............................  Entity with 2 to 5                   472           52.25          0.0037
                                         vessels.
Medium................................  Entity with 6 to 25                  179          194.05          0.0292
                                         vessels.
Large.................................  Entity with >25 vessels.              32          873.17          0.0072
Avg...................................  All fleet sizes.........  ..............           75.91          0.0152
----------------------------------------------------------------------------------------------------------------

    In the most conservative case, a medium-sized fleet owned by the 
entity with the lowest revenue in the sample, which would have the 
highest possible cost as percentage of total revenue for the affected 
population, the cost imposed by this rule is still less than one 
percent of total revenues. In this conservative example, the entity's 
estimated annual cost would be approximately $321 for a fleet of 18 
vessels, 0.76 percent of their $42,000 revenue.\38\ On average, the 
cost incurred is less than a quarter of one percent of revenues.
---------------------------------------------------------------------------

    \38\ The value of $42,000 comes from the original FRFA of 81 FR 
40003, June 20, 2016.

                                    Table 15--Distribution of Revenue Impacts
----------------------------------------------------------------------------------------------------------------
                                                           Small entities with known   Portion of small entities
      % Revenue impact          Average annual impact           revenue impact          with known revenue data
----------------------------------------------------------------------------------------------------------------
                       <1                       $75.91                         183                         100
                      1-3                        75.91                           0                           0
                       >3                        75.91                           0                           0
----------------------------------------------------------------------------------------------------------------

    Since the most conservative case shows that the impact of this rule 
would be less than 1 percent of revenues for a small entity, no small 
entity would have an impact greater than 1 percent of revenues. 
Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that this 
proposed rule would not have a significant economic impact on a 
substantial number of small entities. If you think that your business, 
organization, or governmental jurisdiction qualifies as a small entity 
and that this proposed rule would have a significant economic impact on 
it, please submit a comment to the docket at the address listed in the 
ADDRESSES section. In your comment, explain why you think it qualifies 
and how and to what degree this proposed rule would economically affect 
it.

C. Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996, Public Law 104-121, we want to assist small 
entities in understanding this proposed rule so that they can better 
evaluate its effects on them and participate in the rulemaking.

[[Page 40342]]

If the proposed 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 proposed rule. 
The Coast Guard will not retaliate against small entities that question 
or complain about this proposed 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 proposed rule would call for a collection of information under 
the Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520. As defined in 
5 CFR 1320.3(c), ``collection of information'' comprises reporting, 
recordkeeping, monitoring, posting, labeling, and other similar 
actions. The title and description of the information collections, a 
description of those who must collect the information, and an estimate 
of the total annual burden follow below. The estimate covers the time 
for reviewing instructions, searching existing sources of data, 
gathering and maintaining the data needed, and completing and reviewing 
the collection.
    The collection of information under this proposed rule falls under 
the same collection of information already required for letters of 
designation described in OMB Control Number 1625-0072. This proposed 
rule does not change the content of responses, nor the estimated burden 
of each response, but does increase the number of annual respondents 
and responses from 190 to 3,111.
    Title: Waste Management Plans, Refuse Discharge Logs, and Letters 
of Instruction \39\ for Certain Persons-in-Charge (PIC) and Great Lakes 
Dry Cargo Residue Recordkeeping.
    OMB Control Number: 1625-0072.Summary of the Collection of 
Information: The Letter of Instruction's contents should verify the 
PIC's credentials, stating that the holder has received sufficient 
formal instruction from the owner, operator, or agent of the vessel, as 
required by 33 CFR 155.715 and the current CFR 155.710(e)(2) and 
proposed 155.710(e)(1).
    Need for Information: This information is needed to ensure that: 
(1) Certain U.S. vessels develop and maintain a waste plan; (2) certain 
U.S. vessels maintain refuse discharge records; (3) certain individuals 
that act as fuel transfer PIC receive a letter of instruction for 
prevention of pollution; and (4) certain Great Lakes vessels conduct 
dry cargo residue recordkeeping.
    Use of Information: To ensure that fuel transfer competency 
standards are met, all PICs on uninspected vessels must carry a Letter 
of Instruction if they do not hold a Coast Guard issued credential.
    Description of Respondents: Compliance officers for entities 
conducting transfers of fuel oil and needing to designate a PIC of such 
transfers.
    Number of Respondents: Increase of 3,254 respondents from 190 to 
3,444.
    Burden of Response: 0.167 hours.
    Estimate of Total Annual Burden: Increase of 611 hours from 32 
hours to 643 hours.
---------------------------------------------------------------------------

    \39\ As stated in the Discussion of Proposed rule section, this 
proposed rule would provide for a consistent name of this letter by 
referring to it as a ``Letter of Designation,'' and we would 
accordingly amend the title of this collection of information.
---------------------------------------------------------------------------

    As required by 44 U.S.C. 3507(d), we will submit a copy of this 
proposed rule to OMB for its review of the collection of information.
    We ask for public comment on the proposed collection of information 
to help us determine, among other things--
     How useful the information is;
     Whether the information can help us perform our functions 
better;
     How we can improve the quality, usefulness, and clarity of 
the information;
     Whether the information is readily available elsewhere;
     How accurate our estimate is of the burden of collection;
     How valid our methods are for determining the burden of 
collection; and
     How we can minimize the burden of collection.
    If you submit comments on the collection of information, submit 
them by the date listed in the DATES section of this preamble to both 
the OMB and to the docket where indicated under ADDRESSES.
    You need not respond to a collection of information unless it 
displays a currently valid control number from OMB. Before the Coast 
Guard could enforce the collection of information requirements in this 
proposed rule, OMB would need to approve the Coast Guard's request to 
collect this information.

E. Federalism

    A rule has implications for federalism under Executive Order 13132 
(Federalism) if it has a substantial direct effect on States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. We have analyzed this proposed 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 is explained below.
    It is well settled that States may not regulate in categories 
reserved for regulation by the Coast Guard. It is also well settled 
that all of the categories covered in 46 U.S.C. 3306, 3703, 7101, and 
8101 (design, construction, alteration, repair, maintenance, operation, 
equipping, personnel qualification, and manning of vessels)--as well as 
the reporting of casualties and any other category in which Congress 
intended the Coast Guard to be the sole source of a vessel's 
obligations--are within the field foreclosed from regulation by the 
States. See the Supreme Court's decision in United States v. Locke and 
Intertanko v. Locke, 529 U.S. 89, 120 S.Ct. 1135 (2000).) This proposed 
rule, as promulgated under 46 U.S.C. 3306 and 3703, concerns personnel 
qualifications because it would amend requirements for who may serve as 
the PIC of fuel oil transfers on inspected vessels. 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. Additionally, for rules with federalism implications 
and preemptive effect, Executive Order 13132 specifically directs 
agencies to consult with State and local governments during the 
rulemaking process. If you believe this rule has implications for 
federalism under Executive Order 13132, please call or

[[Page 40343]]

email the person listed in the FOR FURTHER INFORMATION CONTACT section 
of this preamble.

F. Unfunded Mandates

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

G. Taking of Private Property

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

J. Indian Tribal Governments

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

K. Energy Effects

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

L. Technical Standards

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

M. Environment

    We have analyzed this proposed rule under Department of Homeland 
Security Management Directive 023-01 and Environmental Planning 
COMDTINST 5090.1 (series), which guides the Coast Guard in complying 
with the National Environmental Policy Act of 1969 (42 U.S.C. 4321-
4370f), and have made a preliminary determination that this action is 
one of a category of actions that do not individually or cumulatively 
have a significant effect on the human environment. A preliminary 
Record of Environmental Consideration supporting this determination is 
available in the docket where indicated under the ``Public 
Participation and Request for Comments'' section of this preamble. This 
proposed rule would be categorically excluded under paragraph L56 in 
Table 3-1 of U.S. Coast Guard Environmental Planning Implementing 
Procedures 5090.1. Paragraph L56 pertains to the training, qualifying, 
licensing, and disciplining of maritime personnel. This proposed rule 
involves letters of designation to assign PIC of fuel oil transfers on 
inspected vessels. We seek any comments or information that may lead to 
the discovery of a significant environmental impact from this proposed 
rule.

List of Subjects in 33 CFR Part 155

    Alaska, Hazardous substances, Oil pollution, Reporting and 
recordkeeping requirements.

    For the reasons discussed in the preamble, the Coast Guard proposes 
to amend part 155 as follows:

PART 155--OIL OR HAZARDOUS MATERIAL POLLUTION PREVENTION 
REGULATIONS FOR VESSELS

0
1. The authority citation for part 155 is revised to read as follows:

    Authority: 3 U.S.C. 301 through 303; 33 U.S.C. 1321(j), 1903(b), 
2735; 46 U.S.C 3306, 3703, 70011, 70034; E.O. 12777, 56 FR 54757, 3 
CFR, 1991 Comp., p. 351; Department of Homeland Security Delegation 
No. 0170.1. Section 155.1020 also issued under section 316 of Pub. 
L. 114-120. Section 155.480 also issued under section 4110(b) of 
Pub. L. 101-380.

    Note: Additional requirements for vessels carrying oil or 
hazardous materials are contained in 46 CFR parts 30 through 40, 
150, 151, and 153.

0
2. Amend Sec.  155.710(e) as follows:
0
a. In the introductory text, remove the word ``shall'' and add, in its 
place, the word ``must'';
0
b. Revise paragraph (e)(1);
0
c. Remove paragraph (e)(2);
0
d. Redesignate paragraphs (e)(3) and (e)(4) as paragraphs (e)(2) and 
(e)(3), respectively; and
0
e. In newly redesignated paragraph (e)(2), remove the text ``or (2)''.
    The revision reads as follows:

Sec.  155.710  Qualifications of person in charge.

* * * * *
    (e) * * *
    (1) On each inspected vessel required by 46 CFR chapter I to have 
an officer aboard, and on each uninspected vessel, either:
    (i) Holds a valid merchant mariner credential issued under 46 CFR 
chapter I, subchapter B, with an endorsement as master, mate, pilot, 
engineer, or operator aboard that vessel, or holds a valid merchant 
mariner credential endorsed as Tankerman-PIC; or
    (ii) Carries a letter satisfying the requirements of Sec.  155.715 
and designating him or her as a PIC, unless equivalent evidence is 
immediately available aboard the vessel or at his or her place of 
employment.
* * * * *

Sec.  155.715  [Amended]

0
3. In Sec.  155.715, remove the text ``letter of instruction required 
in Sec.  155.710(e)(2)'' and add, in its place, the text ``letter 
referenced in Sec.  155.710(e)(1)''.

[[Page 40344]]

    Dated: August 9, 2019.
David C. Barata,
Captain, U.S. Coast Guard, Acting Assistant Commandant for Prevention 
Policy.
[FR Doc. 2019-17457 Filed 8-13-19; 8:45 am]
BILLING CODE 9110-04-P