Certificate of Documentation-5 Year Renewal Fees

Citation86 FR 5022
Published date19 January 2021
Record Number2021-00526
SectionRules and Regulations
CourtCoast Guard
Federal Register, Volume 86 Issue 11 (Tuesday, January 19, 2021)
[Federal Register Volume 86, Number 11 (Tuesday, January 19, 2021)]
                [Rules and Regulations]
                [Pages 5022-5033]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2021-00526]
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                DEPARTMENT OF HOMELAND SECURITY
                Coast Guard
                46 CFR Part 67
                [Docket No. USCG-2020-0215]
                RIN 1625-AC26
                Certificate of Documentation--5 Year Renewal Fees
                AGENCY: Coast Guard, DHS.
                ACTION: Final rule.
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                SUMMARY: The Coast Guard is issuing a final rule extending the validity
                of a recreational vessel endorsement on a Certificate of Documentation
                (COD) from 1 to 5 years. Congress passed and the President signed the
                Frank LoBiondo Coast Guard Authorization Act of 2018, which requires
                the Coast Guard to issue recreational vessel CODs for 5 years. By
                updating the Code of Federal Regulations to reflect this change, the
                Coast Guard anticipates this final rule to harmonize with the
                requirements of the 2018 Act that decreased the burden on recreational
                vessel owners by requiring COD renewals every 5 years rather than
                annually.
                DATES: This final rule is effective February 18, 2021.
                ADDRESSES: To view documents mentioned in this preamble as being
                available in the docket, go to https://www.regulations.gov, type USCG-
                2020-0215 in the ``SEARCH'' box and click ``SEARCH.'' Click on Open
                Docket Folder on the line associated with this rule.
                FOR FURTHER INFORMATION CONTACT: For information about this document,
                call or email Mr. Ronald Teague, Department of Homeland Security, U.S.
                Coast Guard, National Vessel Documentation Center, 792 T J Jackson
                Drive, Falling Waters, WV 25419; telephone 304 271-2506; email
                [email protected].
                SUPPLEMENTARY INFORMATION:
                Table of Contents for Preamble
                I. Abbreviations
                II. Basis and Purpose, and Regulatory History
                III. Background
                IV. Discussion of the Rule
                V. Regulatory Analyses
                 A. Regulatory Planning and Review
                 B. Small Entities
                 C. Assistance for Small Entities
                 D. Collection of Information
                 E. Federalism
                 F. Unfunded Mandates
                 G. Taking of Private Property
                 H. Civil Justice Reform
                 I. Protection of Children
                 J. Indian Tribal Governments
                 K. Energy Effects
                 L. Technical Standards
                 M. Environment
                I. Abbreviations
                2018 Act Frank LoBiondo Coast Guard Authorization Act of 2018 (Pub.
                L. 115-282, 132 Stat. 4192)
                BLS Bureau of Labor Statistics
                CFR Code of Federal Regulations
                COD Certificate of Documentation
                DHS Department of Homeland Security
                FR Federal Register
                NPRM Notice of proposed rulemaking
                NVDC U.S. Coast Guard National Vessel Documentation Center
                OMB Office of Management and Budget
                Sec. Section
                SME Subject matter expert
                U.S.C. United States Code
                II. Basis and Purpose, and Regulatory History
                 The legal basis for this final rule is found in Section 512 of the
                Frank LoBiondo Coast Guard Authorization Act of 2018 (2018 Act) (Pub.
                L. 115-282, 132 Stat. 4192) (the 2018 Act), which the President signed
                on December 4, 2018. The 2018 Act directed the Coast Guard to do the
                following: (1) Make Certificates of Documentation (CODs) for
                recreational vessels of at least five
                [[Page 5023]]
                net tons \1\ effective for 5 years; and (2) require owners of
                recreational vessel of at least five net tons to notify the Coast Guard
                of each change in the information on which the issuance of the COD is
                based. Vessel owners must report each change of information that occurs
                before expiration of the certificate not later than 30 days after such
                change. This rulemaking is issued under authority found in Title 46 of
                the United States Code (U.S.C.) 2103.
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                 \1\ 46 U.S.C. 12103 provides, in pertinent part, ``Except as
                otherwise provided, a certificate of documentation for a vessel may
                be issued under this chapter only if the vessel is--. . .(2) at
                least 5 net tons as measured under part J of this subtitle; . . .''
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                 The Coast Guard finds that good cause exists under the
                Administrative Procedure Act, 5 U.S.C. 553, to dispense with notice and
                comment procedures. Prior notice and opportunity to comment on this
                rule are unnecessary under 5 U.S.C. 553(b)(3)(B) because Section 512 of
                the 2018 Act provides the Coast Guard no discretion in adopting the
                specific time frames for renewal of recreational vessel CODs. The 2018
                Act does not allow for alternatives. It does not permit the Coast Guard
                to decide upon a different time frame for renewal, choose to adopt a
                different renewal period, or respond to public comments by modifying
                the substance of the rule. Soliciting public comment on the correct
                time period for COD renewal for a recreational vessel, or on the
                decision to update the regulations to comport with the statutory
                mandate, is unnecessary and would in fact be futile.\2\ It should be
                noted that the Coast Guard has already implemented the requirements of
                Section 512 of the 2018 Act and is presently issuing multi-year CODs to
                recreational vessels of at least 5 net tons.
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                 \2\ See Metzenbaum v. Federal Energy Regulatory Commission, 675
                F. 2d 1282, 1291 (D.C. Cir. 1982) (finding notice and comment
                unnecessary for nondiscretionary acts where notice and comment
                ``might even have been contrary to the public interest, given the
                expense that would have been involved in a futile gesture.'')
                (internal quotation marks omitted).
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                III. Background
                 Section 512 of the 2018 Act directs how the Coast Guard must
                administer its certificate of documentation program, and this rule
                conforms sections in Title 46 of the Code of Federal Regulations (CFR)
                part 67 to reflect what is now the law. As described above, the Coast
                Guard finds that good cause exists to forego notice and comment
                rulemaking because the statute provides the Coast Guard with no
                discretion to exercise in response to comments. Accordingly, the Coast
                Guard did not issue a notice of proposed rulemaking. This final rule
                only amends the regulations so that they are in agreement with the
                requirements already in the law.
                 The purpose of this final rule is to meet the Congressional mandate
                contained in Section 512 of the 2018 Act, in which Congress requires
                the Coast Guard to issue recreational endorsements on CODs with a
                validity of 5 years. Additionally, the 2018 Act directs the Coast Guard
                to establish phased user fees for 5-, 4-, 3-, 2-, and 1-year
                recreational endorsements. After the phase-in period is complete, on
                December 31, 2021, applicants will only be able to apply for a 5-year
                recreational endorsement.
                 In accordance with 46 U.S.C. 12105(e)(2)(C), the cost of the user
                fee will be calculated by multiplying 5 years by the recently
                established $26 annual fee, for a total of $130.\3\ The 5-year fee is
                consistent with statute and will ensure that the Coast Guard collects
                the appropriate user fees, consistent with the cost to provide the
                service. The new fee for a 5-year recreational endorsement will be in
                addition to the fee collected for initial and exchanges of CODs.
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                 \3\ See 79 FR 47015, 47106 (Aug. 12, 2014).
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                 Lastly, this final rule repeats the requirement in the 2018 Act for
                vessel owners to notify the Coast Guard of each change in the
                information on which the issuance of the COD for the vessel is based,
                before the expiration of the COD and no later than 30 days after the
                change. The COD will terminate upon the expiration of the 30-day period
                if the owner has not notified the Coast Guard of changes within the 30-
                day timeframe.
                IV. Discussion of the Rule
                 On March 3, 2015, the Coast Guard published a request for comments,
                specifically seeking input on increasing the validity period for
                renewing CODs, methods for doing so, and possibly updating the fee for
                services (80 FR 11361). We received 2,844 comments in response to our
                notice, largely in support of a multiyear registration option. However,
                our request for comments was superseded by section 311 of the Coast
                Guard Authorization Act of 2015 (Pub. L. 114-120), and again by the
                Frank LoBiondo Coast Guard Authorization Act of 2018 (Pub. L. 115-282),
                which specifically directed the Coast Guard to change the validity
                period of CODs for recreational vessels to a 5-year option only, after
                a 3-year phase-in period during which vessel owners could choose 1, 2,
                3, 4, or 5 years.
                 There are no maritime safety or security reasons to change the
                recreational vessel COD validity from 1 year to 5. However, Congress
                determined that a change in the validity was in the best interest of
                recreational vessel owners, and the Coast Guard is required to recoup
                the costs of providing a service.\4\ To ensure the appropriate user
                fees are collected for 5-year CODs, the Coast Guard will collect fees
                consistent with the annual cost multiplied by 5, as required by section
                512 of the 2018 Act.
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                 \4\ 46 U.S.C. 2110.
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                 Currently, 46 CFR 67.163(a) states that all endorsements on a COD,
                including commercial vessel CODs, are valid for 1 year. In this final
                rule, the Coast Guard is amending this section to reflect what is
                already stated in the 2018 Act: That only commercial vessel CODs are
                valid for one 1 year, and that recreational endorsements are valid for
                5 years. Additionally, the amendment clarifies that a vessel with both
                recreational and commercial endorsements must renew annually. The Coast
                Guard is also amending Sec. 67.163(b) to reflect the appropriate
                renewal application, as the currently listed form no longer exists.
                Lastly, as the 2018 Act requires, the Coast Guard is adding paragraph
                (c) to Sec. 67.163 to establish the 5-year renewal requirement and
                inform recreational vessel owners that they have the option to renew
                recreational endorsements for durations of 1, 2, 3, 4, or 5 years
                during the phase-in period. The ability for the owner to select
                validity is only in effect from January 1, 2019, to December 31, 2021.
                 The Coast Guard is amending Sec. 67.317 to reflect that
                recreational endorsements must be renewed every 5 years. The Coast
                Guard is also amending Sec. 67.319 to reflect that an owner of a
                vessel that has a change of information on which the issuance of the
                COD of the vessel is based must notify the Coast Guard of the change of
                information within 30 days, as is required by section 512 of the 2018
                Act. Furthermore, the Coast Guard is amending this section to reflect
                that the vessel's COD will be terminated if the owner fails to notify
                the Coast Guard within 30 days of any changes on which the issuance of
                the COD is based. The Coast Guard is also amending Sec. 67.515 to
                remove the word ``annual'' in describing endorsement renewals.
                 Finally, the Coast Guard is amending table 1 to Sec. 67.550 to
                reflect the appropriate fee for a 5-year recreational endorsement, and
                the fees associated with the owner choosing to have a certificate
                issued or renewed for 1, 2, 3,
                [[Page 5024]]
                4, or 5 years from January 1, 2019, to December 31, 2021.
                V. Regulatory Analyses
                 We developed this final rule to reflect current law, in accordance
                with numerous statutes and Executive orders related to rulemaking.
                Below, we summarize our analyses based on these statutes or Executive
                orders.
                A. Regulatory Planning and Review
                 Executive Orders 12866 (Regulatory Planning and Review) and 13563
                (Improving Regulation and Regulatory Review) direct agencies to assess
                the costs and benefits of available regulatory alternatives and, if
                regulation is necessary, to select regulatory approaches that maximize
                net benefits (including potential economic, environmental, public
                health and safety effects, distributive impacts, and equity). Executive
                Order 13563 emphasizes the importance of quantifying both costs and
                benefits, of reducing costs, of harmonizing rules, and of promoting
                flexibility. Executive Order 13771 (Reducing Regulation and Controlling
                Regulatory Costs) directs agencies to reduce regulation and control
                regulatory costs and provides that ``for every one new regulation
                issued, at least two prior regulations be identified for elimination,
                and that the cost of planned regulations be prudently managed and
                controlled through a budgeting process.''
                 The Office of Management and Budget (OMB) has not designated this
                rule a ``significant regulatory action'' under section 3(f) of
                Executive Order 12866. Accordingly, OMB has not reviewed it. 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 final
                rule can be found in the rule's regulatory analysis (RA) that follows.
                 Following guidance in OMB Circular A-4, we assess the impacts of
                this rule against a no-action baseline as well as a pre-statutory
                baseline. The no-action baseline is an assessment against what the
                world would be like if the rule is not adopted. The pre-statutory
                baseline is an assessment against what the world would be like if the
                relevant statute had not been adopted.
                 This final rule will codify requirements in the 2018 Act that
                established a new schedule for the renewal of CODs for owners of
                recreational vessels of at least 5 net tons. Since the final rule does
                not add any new requirements beyond what is already required and
                implemented under the 2018 Act, under a no-action baseline, its total
                impacts on costs, cost savings, and benefits is zero.
                 We also present impacts of the final rule based on a pre-statutory
                baseline. In other words, in the analysis that follows, we present the
                impacts of the 2018 Act by comparing the requirements of this rule to a
                baseline prior to implementation of the 2018 Act.
                Summary of Impacts (Pre-Statutory Baseline)
                 Prior to the 2018 Act, CODs were effective for one year. The 2018
                Act, codified by this rule, creates savings due to a reduction in the
                time necessary for the submission and approval of COD renewals. We
                anticipate that approximately 165,309 recreational vessel owners will
                be affected annually. In addition, the Government will be affected
                because the number of annual renewals the Coast Guard processes will
                decline. We estimate that the industry for recreational vessel owners
                of vessels of at least 5 net tons will see a savings of $696,727
                annualized over 10 years, and the Coast Guard will reduce spending on
                administrating COD renewals by an annualized amount of approximately
                $997,345. Both cost savings are in $2018, discounted at 7 percent. We
                estimate the annualized cost savings to industry and the Government
                combined to be approximately $1.7 million, discounted at 7 percent.
                 Table 1 presents a summary of the economic impacts. We provide a
                detailed description of the estimates in the next section of this
                analysis.
                 Table 1--Summary of the Economic Impact
                 [Pre-statutory baseline]
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                 Affected
                 Description population Cost Cost savings Benefits
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                Require owners of recreational Estimated average The 2018 Act will The affected The restructuring of
                 vessels of at least 5 net tons annual not impose any industry will CODs from an annual
                 to renew CODs every 5 years, population over cost burden on see a 10-year renewal to a 5-year
                 thereby making CODs effective a 10-year period industry. annualized renewal period will
                 for a 5-year term instead of a of analysis of savings of reduce the industry's
                 1-year term. owners of $696,727. In annual time burden
                 recreational addition, the for submitting COD
                 vessels affected government will applications. In
                 by the 2018 Act see a 10-year addition, the
                 (and codified by annualized Government will
                 this regulation) savings of benefit due to a
                 is 165,309 $997,345; both reduction in the
                 vessels. estimates are amount of
                 discounted at 7 applications
                 percent. processed annually.
                Vessel owners are currently Recreational No cost. This is There are no There are no benefits
                 required to update changes vessel owners clarifying a savings associated with this
                 that impact information impacted by the requirement to associated with provision, other than
                 attested to on the COD. Since 2018 Act would keep COD this provision. clarifying when
                 the 2018 Act requires renewal be affected by information changes to COD
                 every 5 years instead of the provision in current and will information must be
                 annually, a provision within Sec. 67.319 of not impose any addressed.
                 this final rule is clarifying this final rule. cost burden.
                 that owners need to amend any
                 changes to CODs within 30 days
                 of said changes occurring.
                The fee schedule in Table 1 in The affected No cost. This No savings. This There are no benefits
                 Sec. 67.550 provides owners population is clarifies is clarification associated with the
                 with information about the those owners information only. updated table. It is
                 applicable fees for obtaining under 46 CFR about the fees updating the cost
                 the CODs for their vessels. part 67, subpart associated with schedule to account
                 Y. CODs. for the change to a 5-
                 year renewal.
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                 The 2018 Act requires owners of recreational vessels of at least 5
                net tons to renew their CODs every 5 years. Owners were to begin phase-
                in starting January 1 of 2019.
                Population
                 We estimate that there are an average of 162,647 recreational
                vessels in
                [[Page 5025]]
                service in a given year that have a COD. The certification and
                documentation of recreational vessels comes with rights as well as
                responsibilities that entitle vessel owners the protection under the
                U.S. flag.
                 There are two reasons for documenting a recreational vessel. The
                first reason is voluntary, for qualified recreational vessels that are
                at least 5 net tons, thereby granting them protection under the U.S.
                flag. The second reason is to satisfy mortgage lender requirements.
                 Documenting recreational vessels occurs according to five criteria:
                 (1) As a result of the initial documentation of a newly produced
                vessel (not documented);
                 (2) As a result of the initial documentation of a newly acquired
                existing vessel, not previously documented;
                 (3) As an exchange of the vessel from one party to another;
                 (4) As a reinstatement or replacement of a vessel; or
                 (5) As a return to documentation of a vessel.
                 The data used to formulate the affected population is provided by
                the Coast Guard's National Vessel Documentation Center (NVDC), which is
                the approving authority for the issuance of CODs. The NVDC provides
                CODs according to the criteria presented above. The information we
                present in this analysis uses NVDC data for the affected population
                over a 5-year period, from 2013 to 2017.\5\ Based on this data, we
                estimate the average existing number of owners obtaining CODs in a
                given year to be 162,309, of which 7,402 (or 4.6 percent) are initial
                CODs. We assume this is the number of CODs that would have been renewed
                annually in the absence of the 2018 Act.
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                 \5\ Information pertaining to the historical data can be found
                in the Appendix, under the supporting documents in the docket, where
                indicated in the ADDRESSES portion of the preamble. The data for
                2013 to 2017 is as follows: 171,293; 160,669; 156,552; 155,221;
                167,810.
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                 To estimate the number of CODs for new vessels entering into use
                each year, we use the NVDC data to estimate the number of new owners
                requesting initial CODs as a percent of total CODs. We base our
                estimate on 4.6 percent, as this represents the average increase of
                CODs (7,402 [average number of initial CODs] divided by 162,309
                [average total number of CODs]).
                 The number of new vessels entering into use will vary slightly
                every year. However, based on historical data, we can expect their
                average annual rate to converge to a steady figure. Assuming this
                subset (new vessel CODs) of initial CODs is, on average, consistent
                with the average increase of the total COD population (4.6 percent
                annually), we can then assume that, on an annual basis, 338 new vessels
                owners will request CODs each year (7,402 average initial CODs
                multiplied by 4.6 percent). We then add 338 to 162,309 to obtain
                162,647, the average total population of CODs. We use this total
                population estimate to derive the number of CODs that will not need to
                renew as a result of the 2018 Act (which is codified by this
                regulation). As is presented in the cost savings section below, this
                annual estimate varies per year according to the five different annual
                certification criteria and the 3-year phase-in period.
                Cost Savings
                Industry Assessment
                 As a result of the 2018 Act, the Coast Guard will no longer require
                owners of recreational vessels to renew their CODs annually. Therefore,
                the 2018 Act will not impose any cost; only cost savings will be
                realized by the affected population.
                 As of January 1, 2019, owners have been able to select a renewal
                period of multiple years, up to a limit of 5 years. This cost savings
                assessment outlines the Coast Guard's anticipated industry adaptation
                of moving to a 5-year renewal period.
                 The 2018 Act provides that vessel owners will have 3 years
                (starting January 1, 2019 and ending December 31, 2021) to select a
                timeframe for COD renewal that does not exceed 5 years. Hence, vessel
                owners can choose any timeframe from 1 to 5 years during this 3-year
                period. Beginning January 1, 2022, all recreational CODs will be
                renewed with a validity period of 5 years. Therefore, in order to
                formulate the best approximation of how owners will select their
                renewal periods during the phase-in period, we make the assumption that
                equal portions of the affected population selected a renewal period of
                1 to 5 years in 2019.
                 Since the Coast Guard is unable to determine individual preferences
                regarding how owners will choose a renewal term during the phase-in
                period, our methodology anticipates cost savings throughout a 10-year
                period of analysis (2019-2028).\6\ We begin by acknowledging that all
                active CODs had to be renewed in 2019. Therefore, when renewing or
                receiving an initial COD in 2019, all made a decision as to when they
                would renew their next COD. Accordingly, for the first year of the 10-
                year assessment period, 2019, no one within the affected population
                received any savings.\7\ Therefore, savings begin in 2020.
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                 \6\ The Coast Guard has collected 2019 data about the behavior
                of owners towards selecting a new renewal period. However, the data
                was too incomplete to formulate an accurate representation of the
                affected population's choices in that year. In addition, because
                2019 is the only year for which the Coast Guard has information,
                this data does not provide enough information (statistically) to
                develop a trend analysis to project actual changes in behavior.
                Therefore, we have elected to proceed with analyzing this regulatory
                assessment by equally dividing the affected population over a 5-year
                period, resulting in 80% of the annual population not renewing their
                CODs in a given year.
                 \7\ Further information can be found in the Appendix, under
                supporting documents in the docket, where indicated in the ADDRESSES
                portion of the preamble.
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                [[Page 5026]]
                 To conduct this assessment, we create five subcategories (divided
                equally) of the affected population, and assign each category a
                specific year for renewal. Any owner who selects a timeframe for
                renewal greater than 2 years, or beyond 2021 (60 percent of the
                affected population), will have their follow-on renewals occurring
                every 5 years after their initial renewal choice. However, we assume
                that those who select a timeframe of 1 or 2 years (which we refer to as
                groups A and B), will not necessarily renew their CODs in 5 years.
                Since groups A and B have chosen the option of renewing in 1 or 2
                years, which falls within the phase-in period, they will be given
                another opportunity to select a renewal period of 1 to 5 years at the
                time of their renewal.\8\ Since groups A and B will, again, have the
                option of selecting a renewal period of 1 to 5 years, we again
                partition, within each group, equal portions of owners selecting 1 to 5
                years renewal. Once an individual in group A and B selects a renewal
                period that goes beyond 2021, their follow-up renewal will occur on a
                5-year renewal cycle. In Table 2 we present a summary outline as to how
                we estimate the number of non-renewals occurring during a 10-year
                period of analysis. Further details about how we estimated the number
                of renewals and avoided renewals can be found in the Appendix, under
                supporting documents in the docket, where indicated in the ADDRESSES
                portion of the preamble.
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                 \8\ Because we are unable to determine how or why owners make
                their financial decisions, we assume that groups A and B are not
                inclined to make a long-term commitment (beyond year 2021) due to
                projected or un-projected future financial plans. Therefore, we
                assume that short-term financial decisions will direct them to
                select a shorter term of 1 or 2 years. For the years following 2021,
                we assume renewals will be conducted every 5 years. For this
                illustrative analysis, we break down the renewals in equal annual
                portions over the five-year period. However, the Coast Guard
                recognizes that renewal numbers could vary over the 5-year period
                for several reasons, including the possibility the owners could get
                rid of their vessels prior to the renewal term.
                 Table 2--Summary of Potential Non-Renewing COD Population Over 10-Year Period of Analysis \9\
                 [Pre-statutory baseline]
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                 Potential non-renewing population
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                 Phase-in period 5-year renewal period
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                 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
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                COD applications under the baseline (A)............. 162,647 162,647 162,647 162,647 162,647 162,647 162,647 162,647 162,647 162,647
                COD applications under the 2018 Act (B)............. 162,647 32,867 39,441 47,329 47,329 47,329 14,800 8,226 47,667 47,667
                Avoided COD applications (A-B)...................... 0 129,780 123,206 115,317 115,317 115,317 147,846 154,421 114,978 114,979
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                Note: Values may not add due to rounding.
                 The summary in Table 2 provides an approach as to how industry may
                react to the changes in the renewal process. In addition, it provides
                the affected population, which serves as a basis for cost savings
                throughout the 10-year period of analysis.
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                 \9\ An expanded population matrix appears in the appendix, which
                can be found in the supporting documents in the docket, where
                indicated under the ADDRESSES portion of this preamble.
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                 All savings realized will be administrative, from the perspective
                of vessel owners and the Government. Because the 2018 Act changed
                annual renewals to a 5-year renewal period, owners will spend less time
                submitting paperwork for renewing their CODs. In addition to the
                savings that owners will receive, the industry as a whole will see a
                reduction in paperwork (see Paperwork Reduction Act in section V. D of
                the preamble to this final rule).
                 In order to obtain a wage rate for our calculations, to determine
                the amount of savings incurred by this rulemaking, we first identify
                the individual(s) who submit the renewal form (CG-1280) to the Coast
                Guard. Using the 2018 wage rate data from the Bureau of Labor
                Statistics (BLS) website, we obtain the employee wage that most
                resembles the persons tasked with renewing CODs as Transportation
                Employment, Storage and Distribution Managers (OES code 11-3071). The
                mean hourly wage rate associated with this profession, as reported by
                BLS, is $49.45 per hour.\10\ In order to account for employee benefits,
                we apply a load factor to the mean hourly wage rate. We calculate the
                load factor from BLS's Employer Cost for Employee Compensation survey
                and apply it to the mean hourly wage rate to obtain a fully loaded wage
                rate, which more accurately represents the employers' cost per hour for
                employees' work.\11\ The load factor we used for this economic
                assessment is 1.52.\12\ The loaded mean hourly wage rate we used to
                assess the savings estimates is calculated at $75.16 ($49.45 multiplied
                by 1.52).
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                 \10\ Information about the wage rates for Transportation,
                Storage and Distribution Managers (11-3071) can be found at https://www.bls.gov/oes/2018/may/oes113071.htm.
                 \11\ A loaded wage rate is what a company pays per hour to
                employ a person, not the hourly wage the employee receives. The
                loaded wage rate includes the cost of benefits (health insurance,
                vacation, etc.).
                 \12\ From the BLS, Employer Cost for Employee Compensation
                survey. The load factor for wages is calculated by dividing total
                compensation by wages and salaries. For this report, we used the
                Transportation and Materials Moving Occupations, Private Industry
                report (Series IDs, CMU2010000520000D and CMU2020000520000D for
                Total Compensation and Wages and Salaries, respectively, not
                seasonally adjusted) for all workers using the multi-screen data
                search. Using 2018 4th quarter data, we divide $29.53/$19.42 to
                obtain a load factor of 1.52. See https://data.bls.gov/cgi-bin/dsrv?cm.
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                 From the Supporting Statement for Vessels Documentation collection
                of information (OMB Control No. 1625-0027), we obtain the amount of
                time (or time burden) necessary for filling out the renewal
                documentation as 5 minutes. Applicants may submit the renewal form CG
                1280 through regular postal service or through the internet. For the
                proportion of those submitting form CG-1280 through the internet,
                annual renewal is about 28 percent \13\ of the affected population,
                while the remaining 72 percent continue utilizing the postal service
                for their submissions. We estimate that the cost of submitting a
                renewal form via postal service is 0.55 cents (the cost of a first-
                class postage stamp), while those who submit the form through the
                internet incur no additional mailing costs. There are no associated
                savings with submitting the form online, as we assume that for those
                choosing that method, internet service is an established part of
                business operations.
                ---------------------------------------------------------------------------
                 \13\ The NVDC provided their assessment on renewal submissions
                that will be received via internet.
                [[Page 5027]]
                 Table 3--Summary of Values Used To Formulate Savings
                 [Pre-statutory baseline]
                ------------------------------------------------------------------------
                 Burden hours HR equivalent
                ------------------------------------------------------------------------
                From collection of information. 5 Min.................. 0.08
                YR-2018........................ Hourly Wage............ $49.45
                 Load Rate.............. 1.52
                 Total Wage Rate........ $75.16
                 Submission Cost........ ** $0.55
                 Percent of Submission.. 100%
                 Letter Carrier......... 72%
                 Via Internet........... 28%
                ------------------------------------------------------------------------
                ** This cost is only associated with submission of the renewal
                 documentation via letter carrier.
                 We estimate the savings of this 10-year assessment by combining the
                information found in Tables 2 and 3. From Table 2, we anticipate how
                industry will react to changes in the certification renewal process.
                Therefore, the calculations for determining savings are as follows:
                Since the number of affected population throughout the 10-year
                assessment is not uniform, we utilize a sample year to explain how we
                obtain savings. From table 2, we use the year 2024 as an example. We
                estimate the number of the affected population for 2024 not renewing
                their CODs to be about 115,317. The amount of cost savings associated
                with not having to fill out the request for certification, per person,
                is estimated at $6.01 ($75.16 loaded wage rate multiplied by 0.08 time
                burden associated with filling out documentation). Multiplying the
                affected population in 2024 by the potential savings of $6.01 due to
                the reduction in time burden results in administrative savings for that
                year of $693,061. We then account for the cost of submitting the
                application, at $0.55 for 72 percent of the population in that year,
                adding an additional cost savings of about $45,666 (72 percent of
                115,317 [the affected population in 2024] equals 83,029 multiplied by
                $0.55 [the cost of a first-class stamp]). The resulting total cost
                savings for year 2024 is approximately $738,723 (non-discounted). Table
                4 provides a 10-year summary of cost savings that industry will
                realize.
                 Table 4--Summary of 10-Year Assessment of Industry Cost Savings, in $2018
                 [Pre-statutory baseline]
                ----------------------------------------------------------------------------------------------------------------
                 Cost savings non- Cost savings Cost savings
                 Year discounted discounted 3% discounted 7%
                ----------------------------------------------------------------------------------------------------------------
                2019.......................................................... No savings in first year
                 -------------------------------------------------
                2020.......................................................... $831,371 $783,647 $726,151
                2021.......................................................... 789,251 722,277 644,264
                2022.......................................................... 738,721 656,344 563,566
                2023.......................................................... 738,723 637,229 526,700
                2024.......................................................... 738,723 618,669 492,243
                2025.......................................................... 947,104 770,082 589,809
                2026.......................................................... 989,211 780,892 575,730
                2027.......................................................... 736,549 564,504 400,634
                2028.......................................................... 736,558 548,069 374,429
                 -------------------------------------------------
                 Total..................................................... 7,246,212 6,081,712 4,893,526
                ----------------------------------------------------------------------------------------------------------------
                 Annualized................................................ ................ 712,962 696,727
                ----------------------------------------------------------------------------------------------------------------
                Note: Values may not add due to rounding.
                 Summarizing Table 4, we note that industry will not incur any cost
                savings during the first year of our assessment, since the entire
                affected population had to renew in 2019 and, in that year, make a
                determination regarding their next renewal date.\14\ However, after the
                first year, industry will begin to realize savings due to the extended
                renewal period provided by the 2018 Act. We estimate that the total 10-
                year savings is $4.9 million, and the annualized savings is $0.697
                million, both discounted at 7 percent.
                ---------------------------------------------------------------------------
                 \14\ In 2019, all CODs were still affected by pre-mandated
                regulations, which means all CODs were renewed. For more information
                on the distribution of the population, please see the Appendix in
                the docket.
                ---------------------------------------------------------------------------
                Government Assessment
                 The 2018 Act also affects the Federal government by reducing the
                amount of renewal applications it will process in a given year. The
                anticipated reduction in the administration of renewal applications is
                correlated to the anticipated reduction in the number of the affected
                population renewing their CODs in a given year. The Government's
                reduction in approved certification will follow the data found in Table
                2.
                 The COD approval is a two-phase process, in which the Government
                initiates, as a courtesy, the renewal process, and then, in the
                processing phase, issues the CODs to vessel owners. The first phase,
                initiating a request for vessel owners to renew their annual CODs, is
                accomplished by sending CG-1280 Vessel Renewal Notification Application
                for Renewal mailers to vessel owners approximately 45 days prior to the
                expiration date of their current CODs. The first step of this phase is
                to determine who is eligible for renewal and to remind current COD
                holders that their COD is expiring
                [[Page 5028]]
                within 45 days. Once that is accomplished, all material relating to
                renewal notices, to include metered mail, is processed and sent to
                vessel owners. In the second step, the Government receives the
                application packet from owners, which is reviewed and approved prior to
                issuance of the COD.
                 The Government employees assigned the duties of initiating renewal
                notices are classified as GS-5 and GS-7-employees. Subject matter
                experts (SMEs) estimate the individual cost of sending a renewal notice
                at approximately $3.05.\15\ To estimate the annual reduction in cost to
                the Government, we multiply the individual cost of annual notifications
                by the number of vessel owners not submitting annual renewals in a
                given year. Table 5 shows the estimated cost savings, per year, that
                the Government will realize from a reduction in the annual number of
                notifications sent out to owners of recreational vessels.
                ---------------------------------------------------------------------------
                 \15\ The NVDC provided the information pertaining to government
                expenditure from a draft study they commissioned through an
                independent third party. At the time of publishing this assessment,
                the document has not been made available to the public.
                 Table 5--Estimated Government Savings for Initiating COD Renewals in
                 $2018
                 [Pre-statutory baseline]
                ------------------------------------------------------------------------
                 Estimated Government
                 Year reduction in savings non-
                 applications discounted
                ------------------------------------------------------------------------
                2019.................................. 0 0
                2020.................................. 129,780 $395,829
                2021.................................. 123,205 375,775
                2022.................................. 115,317 351,717
                2023.................................. 115,317 351,718
                2024.................................. 115,317 351,718
                2025.................................. 147,846 450,932
                2026.................................. 154,419 470,979
                2027.................................. 114,978 350,683
                2028.................................. 114,979 350,687
                 ---------------------------------
                 Total............................... .............. 3,450,039
                ------------------------------------------------------------------------
                Note: Values may not add due to rounding.
                 The second phase of the process involves the Government receiving
                the renewal applications from vessel owners, processing those
                applications, and then issuing the CODs. The Government employees
                responsible for reviewing the applications and granting CODs are also
                classified as GS-5 and GS-7 employees. According to data provided by
                the SME, it takes a GS-5 9 minutes to process a renewal application, at
                a cost of $5.40 per renewal.\16\ Additionally, it takes a GS-7
                approximately 1 minute to approve a COD, at a cost of $0.72 per renewal
                request.\17\ The individual cost of finalizing the renewal process, to
                include mailing the certificates, is estimated at $6.12 per
                renewal.\18\ The savings that the Government will realize from
                approving and issuing CODs will be the number of owners not submitting
                COD renewals in a given year. Table 6 shows the estimated savings,
                annually, that the Government will realize from a reduction in
                processing renewal applications.
                ---------------------------------------------------------------------------
                 \16\ The NVDC provided the information pertaining to government
                expenditure from a draft study they commissioned from an independent
                third party. At the time of publishing this assessment, the document
                has not been made available to the public.
                 \17\ Ibid.
                 \18\ The estimated cost was obtained by combining the
                administrative cost of a Clerk 1, $5.40 ($.60 wage per minute
                multiplied by 9 minutes of administrative time), and a Clerk 2, $.72
                ($.72 wage rate per minute multiplied by 1 minute of administrative
                time). Total administrative cost burden is $6.12 ($5.40 plus $.72)
                per applicant.
                 Table 6--Estimated Government Saving for Processing and Granting COD
                 Renewals in $2018
                 [Pre-statutory baseline]
                ------------------------------------------------------------------------
                 Estimated
                 reduction in Cost savings non-
                 Year applications discounted
                 received
                ------------------------------------------------------------------------
                2019.................................. 0 0
                2020.................................. 129,780 $794,254
                2021.................................. 123,205 754,015
                2022.................................. 115,317 705,740
                2023.................................. 115,317 705,743
                2024.................................. 115,317 705,743
                2025.................................. 147,846 904,820
                2026.................................. 154,419 945,047
                2027.................................. 114,978 703,665
                2028.................................. 114,979 703,674
                 ---------------------------------
                 Total............................... .............. 6,922,700
                ------------------------------------------------------------------------
                Note: Values may not add due to rounding.
                 We estimate the 10-year combined (initial phase and processing
                phase) cost savings that the Government will realize at $10,372,739
                (non-discounted). We estimate the total discounted cost savings at
                $7,004,938, and annualized cost savings of $997,345, both discounted at
                7 percent. Table 7 shows the total estimated Government cost savings
                over the 10-year period of analysis.
                 Table 7--Estimated Total Government Cost Saving, in $2018
                 [Pre-statutory baseline]
                ----------------------------------------------------------------------------------------------------------------
                 Non-discounted
                 Year cost savings 3% 7%
                ----------------------------------------------------------------------------------------------------------------
                2019.......................................................... No savings first year
                 -------------------------------------------------
                2020.......................................................... $1,190,083 $1,121,766 $1,039,464
                2021.......................................................... 1,129,790 1,033,917 922,245
                2022.......................................................... 1,057,457 939,536 806,729
                2023.......................................................... 1,057,461 912,175 753,955
                2024.......................................................... 1,057,461 885,606 704,631
                2025.......................................................... 1,355,752 1,102,350 844,294
                2026.......................................................... 1,416,026 1,117,824 824,140
                2027.......................................................... 1,054,348 808,070 573,496
                2028.......................................................... 1,054,361 784,543.93 535,984
                 -------------------------------------------------
                 Total..................................................... 10,372,739 8,705,792 7,004,938
                ----------------------------------------------------------------------------------------------------------------
                 Annualized................................................ ................ 1,020,584 997,345
                ----------------------------------------------------------------------------------------------------------------
                Note: Values may not add due to rounding.
                [[Page 5029]]
                 The total 10-year combined (industry and Government) cost savings
                is estimated at $17,618,951, non-discounted, with an annualized savings
                of $1,694,073, discounted at 7 percent. Table 8 provides the total
                annual estimated cost savings that the Act will provide to the affected
                stakeholders.
                 Table 8--Total Cost Savings in $2018
                 [Pre-statutory baseline]
                ----------------------------------------------------------------------------------------------------------------
                 Vessel owners
                 Year not submitting Cost savings 3% 7%
                 renewals
                ----------------------------------------------------------------------------------------------------------------
                2019............................................ No savings in first year
                 ---------------------------------------------------------------
                2020............................................ 129,780 $2,021,453 $1,905,414 $1,765,616
                2021............................................ 123,205 1,919,041 1,756,194 1,566,509
                2022............................................ 115,317 1,796,178 1,595,881 1,370,295
                2023............................................ 115,317 1,796,184 1,549,404 1,280,655
                2024............................................ 115,317 1,796,184 1,504,276 1,196,874
                2025............................................ 147,846 2,302,856 1,872,433 1,434,103
                2026............................................ 154,419 2,405,237 1,898,716 1,399,870
                2027............................................ 114,978 1,790,897 1,372,574 974,129
                2028............................................ 114,979 1,790,920 1,332,612 910,413
                 ---------------------------------------------------------------
                 Total....................................... .............. 17,618,951 14,787,504 11,898,463
                ----------------------------------------------------------------------------------------------------------------
                 Annualized.................................. .............. .............. 1,733,546 1,694,073
                ----------------------------------------------------------------------------------------------------------------
                Note: Values may not add due to rounding.
                 In addition to estimating the normal savings for this rule, we use
                the perpetual period of analysis for observing the long-term affect
                this assessment will have on the affected population. Therefore, we
                estimate the total annualized cost savings of the 2018 Act at $1.49
                million in 2016 dollars, using a 7-percent discount rate.
                Final Rule Regulatory Impacts
                 As previously stated, under a no-action baseline, this final rule
                produces no impact on the regulated industry. The rule is merely
                harmonizing current practices implemented by the 2018 Authorization Act
                with 46 CFR part 67. The impacts presented above are measured against a
                pre-statutory baseline and represent the result of the 2018 Act, which
                this rule codifies.
                Alternatives
                 The Coast Guard did not examine any alternatives for this final
                rule as this rule is mandated by Congress under the Coast Guard
                Authorization Act of 2018. The 2018 Act requires that Coast Guard issue
                recreational Certificates of Documentation with a validity of 5 years,
                thereby reducing the amount of annual reporting burden vessel owners
                incur each year. The Coast Guard is promulgating this rule to comply
                with statute and may not adopt a different renewal period or pursue any
                other alternatives.
                B. Small Entities
                 The term ``small entities'' comprises small businesses, not-for-
                profit organizations that are independently owned and operated and are
                not dominant in their fields, and governmental jurisdictions with
                populations of less than 50,000. This rule is not preceded by a notice
                of proposed rulemaking and is, therefore, exempt from the requirements
                of the Regulatory Flexibility Act (5 U.S.C. 601-612). The Regulatory
                Flexibility Act does not apply when notice and comment rulemaking is
                not required.
                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 rule so that they can better evaluate
                its effects on them and participate in the rulemaking. If the rule will
                affect your small business, organization, or governmental jurisdiction
                and you have questions concerning its provisions or options for
                compliance, please contact the person in the FOR FURTHER INFORMATION
                CONTACT section of this rule. The Coast Guard will not retaliate
                against small entities that question or complain about this rule or any
                policy or action of the Coast Guard.
                 Small businesses may send comments on the actions of Federal
                employees who enforce, or otherwise determine compliance with, Federal
                regulations to the Small Business and Agriculture Regulatory
                Enforcement Ombudsman and the Regional Small Business Regulatory
                Fairness Boards. The Ombudsman evaluates these actions annually and
                rates each agency's responsiveness to small business. If you wish to
                comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
                (1-888-734-3247).
                D. Collection of Information
                 This final rule codifies the 2018 Act, which results in a change to
                an existing 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. 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.
                 Title: Vessel Documentation.
                 OMB Control Number: 1625-0027.
                 Summary of the Collection of Information: This final rule, by
                harmonizing with the 2018 Act, modifies the existing Certification of
                Documentation (COD) reporting and recordkeeping requirements in Sec.
                67.163(c), which will amend current reporting. The current regulation
                requires owners of recreational vessels of at least 5 net tons to renew
                their CODs annually. This final rule will codify current industry
                practice as of January 1, 2019 and will require
                [[Page 5030]]
                recreational vessel owners to convert from an annual renewal period to
                a 5-year renewal period.
                 Need for Information: The information is being collected for two
                reasons: (1) The documenting of a U.S. vessel comes with rights as well
                as responsibilities, which entitle the vessel owners protection under
                the U.S. flag; (2) vessel documentation is a requirement in satisfying
                mortgage lender requirements.
                 Proposed Use of Information: The collection of this information is
                maintained by the Coast Guard as a matter of record for identifying
                vessels that will be entitled to protection under U.S. flag. In
                addition, the certification of a vessel is an obligation to be
                performed by the vessel owners as part of a financial agreement they
                have entered into with a mortgage company.
                 Description of the Respondents: The respondents are the owners of
                recreational vessels of at least 5 net tons that choose to document
                their vessels or are required to document their vessels due to
                financial obligations, which a financial institution may require when a
                borrower takes out a loan for the purchase of a vessel.
                 Number of Respondents: The total number of respondents affected is
                estimated at 162,309, plus an estimated average of 338 new vessels
                obtaining CODs each year.
                 Frequency of Response: The final rule codifies the 2018 Act that
                converts the annual renewal of CODs to a 5-year renewal, reducing the
                frequency of responses in any given year. From January 1, 2019 to
                December 31, 2021, owners are allowed to choose their 1 to 5-year
                renewal period. As of January 1, 2022, owners will only be allowed to
                apply for 5-year CODs. However, during the first year (2019), 100
                percent (162,647) of the affected population sought COD renewals for
                their vessels. From 2020 on, we take the anticipated annual 9-year
                average to estimate the potential reduction in frequency of responses
                required from this information collection request. Hence, we estimate
                the average number of responses annually will be reduced from 189,614
                to 63,930.
                 Burden of Response: This final rule codifies the 2018 Act and, as a
                result, will reduce the burden of renewing annual CODs to a 5-year
                renewal period. Therefore, reduction in time for submitting renewal
                application forms will decrease by approximately 10,061 hours.
                 Estimate of Total Annual Burden: The annual reduction in burden is
                estimated as follows:
                 (a) Annual reduction in burden resulting from converting annual
                reporting requirement for recreational vessel of at least 5 net tons to
                a 5-year renewal period: The final rule codifies the 2018 Act that will
                reduce the number of CODs requested and approved annually. We estimate
                that it takes 5 min (0.08 equivalent hours) to send in a vessel
                documentation renewal. We estimate the total average annual burden or
                hour reduction for those vessel owners who will not be required to
                renew their documentation to be 10,054 hours (125,684 * 0.08 hours).
                 (b) The total reduction in annual burden hours due to the
                conversion from an annual renewal to a 5-year renewal period: This
                final rule will result in an estimated average annual reduction in
                total burden hours in the collection of information from 11,373 to
                1,319.
                 As required by 44 U.S.C. 3507(d), we will submit a copy of this
                final rule to OMB for its review of the collection of information. You
                are not required to respond to a collection of information unless it
                displays a currently valid OMB control number.
                E. Federalism
                 A rule has implications for federalism under Executive Order 13132
                (Federalism) if it has a substantial direct effect on States, on the
                relationship between the national government and the States, or on the
                distribution of power and responsibilities among the various levels of
                government. We have analyzed this rule under Executive Order 13132 and
                have determined that it is consistent with the fundamental federalism
                principles and preemption requirements described in Executive Order
                13132. Our analysis follows.
                 As explained in Sections II and III above, this rulemaking is
                needed to conform the regulations to the existing law as amended by the
                2018 Act. The 2018 Act requires the Coast Guard to issue CODs for
                recreational vessels with a period of validity of 5 years, following a
                phase-in period. The 2018 Act prescribes how the cost of the renewal of
                such a recreational endorsement must be calculated in both the phase-in
                period and thereafter. It also requires vessel owners to notify the
                Coast Guard of each change in the information on which the issuance of
                the COD for the vessel is based, before the expiration of the COD and
                no later than 30 days after the change. The 2018 Act also requires that
                a COD will terminate upon the expiration of the 30-day period if the
                owner has not notified the Coast Guard of changes within the 30-day
                timeframe.
                 Documentation under chapter 121 of title 46, United States Code,
                including under 46 U.S.C. 12105 as amended by the 2018 Act (see
                amendments described in the preceding paragraph), is the means by which
                the Federal government allows a vessel to operate in certain trades,
                establishes vessel nationality, and enables a vessel to be subject to
                preferred mortgages. It is well settled that States may not regulate in
                categories reserved by Congress for regulation by the Coast Guard. It
                also is well settled that all the categories regulated under 46 U.S.C.
                2103, 3103, 3306, 3703, 4102, 4502, 7101, and 8101 (design,
                construction, alteration, repair, maintenance, operation, equipping,
                personnel qualification, and manning of vessels), as well as any other
                category in which Congress intended the Coast Guard to be the sole
                source of a vessel's obligations, are within the field foreclosed from
                regulation by the States. See the Supreme Court's decision in United
                States v. Locke and Intertanko v. Locke, 529 U.S. 89, 120 S.Ct. 1135
                (2000). This rule implements changes made by Congress to the
                comprehensive federal vessel documentation requirements of 46 U.S.C.
                ch. 121, over which Congress clearly has granted the Coast Guard, via
                delegation from the Secretary, exclusive authority. Therefore, because
                the States may not regulate within this category, 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. The Coast Guard values the input of State and local
                governments in such matters.
                F. Unfunded Mandates
                 The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538,
                requires Federal agencies to assess the effects of their discretionary
                regulatory actions. In particular, the Act addresses actions that may
                result in the expenditure by a State, local, or tribal government, in
                the aggregate, or by the private sector of $100,000,000 (adjusted for
                inflation) or more in any one year. Although this rule will not result
                in such expenditure, we do discuss the effects of this rule elsewhere
                in this preamble.
                G. Taking of Private Property
                 This rule will not cause a taking of private property or otherwise
                have
                [[Page 5031]]
                taking implications under Executive Order 12630 (Governmental Actions
                and Interference with Constitutionally Protected Property Rights).
                H. Civil Justice Reform
                 This rule meets applicable standards in sections 3(a) and 3(b)(2)
                of Executive Order 12988 (Civil Justice Reform) to minimize litigation,
                eliminate ambiguity, and reduce burden.
                I. Protection of Children
                 We have analyzed this rule under Executive Order 13045 (Protection
                of Children from Environmental Health Risks and Safety Risks). This
                rule is not an economically significant rule and will not create an
                environmental risk to health or risk to safety that might
                disproportionately affect children.
                J. Indian Tribal Governments
                 This rule does not have tribal implications under Executive Order
                13175 (Consultation and Coordination with Indian Tribal Governments),
                because it will not have a substantial direct effect on one or more
                Indian tribes, on the relationship between the Federal Government and
                Indian tribes, or on the distribution of power and responsibilities
                between the Federal Government and Indian tribes.
                K. Energy Effects
                 We have analyzed this rule under Executive Order 13211 (Actions
                Concerning Regulations That Significantly Affect Energy Supply,
                Distribution, or Use). We have determined that it is not a
                ``significant energy action'' under that order because it is not a
                ``significant regulatory action'' under Executive Order 12866 and is
                not likely to have a significant adverse effect on the supply,
                distribution, or use of energy.
                L. Technical Standards
                 The National Technology Transfer and Advancement Act, codified as a
                note to 15 U.S.C. 272, directs agencies to use voluntary consensus
                standards in their regulatory activities unless the agency provides
                Congress, through OMB, with an explanation of why using these standards
                would be inconsistent with applicable law or otherwise impractical.
                Voluntary consensus standards are technical standards (e.g.,
                specifications of materials, performance, design, or operation; test
                methods; sampling procedures; and related management systems practices)
                that are developed or adopted by voluntary consensus standards bodies.
                 This rule does not use technical standards. Therefore, we did not
                consider the use of voluntary consensus standards.
                M. Environment
                 We have analyzed this rule under Department of Homeland Security
                Management Directive 023-01, Rev. 1, associated implementing
                instructions, and Environmental Planning COMDTINST 5090.1 (series),
                which guide the Coast Guard in complying with the National
                Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made
                a determination that this action is one of a category of actions that
                do not individually or cumulatively have a significant effect on the
                human environment. A Record of Environmental Consideration supporting
                this determination is available in the docket. For instructions on
                locating the docket, see the ADDRESSES section of this preamble. This
                rule is categorically excluded under paragraph L57 of Appendix A, Table
                1 of DHS Instruction Manual 023-01-001-01, Rev 1. Paragraph L56
                pertains to documentation of vessels. This rule involves extending the
                validity of a recreational vessel endorsement on a Certificate of
                Documentation.
                List of Subjects in 46 CFR Part 67
                 Reporting and recordkeeping requirements, Vessels.
                 For the reasons discussed in the preamble, the Coast Guard amends
                46 CFR part 67 as follows:
                PART 67--DOCUMENTATION OF VESSELS
                0
                1. The authority citation for part 67 continues to read as follows:
                 Authority: 4 U.S.C. 664; 31 U.S.C. 9701; 42 U.S.C. 9118; 46
                U.S.C. 2103, 2104, 2107, 12102, 12103, 12104, 12105, 12106, 12113,
                12133, 12139; Department of Homeland Security Delegation No. 0170.1.
                0
                2. Amend Sec. 67.163 by:
                0
                a. Revising paragraph (a) introductory text;
                0
                b. Revising paragraph (b); and
                0
                c. Adding paragraph (c).
                 The revisions and addition read as follows:
                Sec. 67.163 Renewal of endorsement.
                 (a) Requirement for renewal of endorsement. Endorsements on
                Certificates of Documentation are valid for 1 year, except for
                Recreational Endorsements on Certificates of Documentation, which are
                valid for 5 years. However, a Certificate of Documentation with a
                Recreational Endorsement and a Commercial Endorsement will only be
                valid for 1 year. Prior to the expiration of an endorsement, the owner
                of a vessel, which is not exempt from the requirement for documentation
                under paragraph (c) of Sec. 67.9, must apply for renewal of the
                endorsement(s) by complying with paragraph (b) of this section. The
                owner of a vessel exempt from the requirement for documentation under
                paragraph (c) of Sec. 67.9 must either:
                * * * * *
                 (b) Renewal application. The owner of a vessel must apply for
                renewal of each endorsement by executing an original Vessel Renewal
                Notification, Application for Renewal (CG-1280) certifying that the
                information contained in the Certificate of Documentation and any
                endorsement(s) thereon remains accurate, and that the Certificate has
                not been lost, mutilated, or wrongfully withheld. The completed CG-1280
                must be sent to the Director, National Vessel Documentation Center.
                 (c) Requirement for renewal of recreational endorsements. A
                certificate of documentation for a recreational vessel and the renewal
                of such a certificate shall be effective for a 5-year period. During
                the period beginning January 1, 2019, and ending December 31, 2021, the
                owner of a recreational vessel may choose a period of effectiveness of
                1, 2, 3, 4, or 5 years for such a certificate of documentation for such
                vessel or the renewal thereof.
                Sec. 67.317 [Amended]
                0
                3. In Sec. 67.317 amend paragraph (a) by adding, after the
                introductory phrase, ``Except as provided in paragraph (b) of this
                section,'' the text ``and except for recreational endorsements, which
                must be renewed every 5 years,''.
                0
                4. Revise Sec. 67.319 to read as follows:
                Sec. 67.319 Requirement to report change in vessel status and
                surrender Certificate of Documentation.
                 (a) The owner of a vessel must notify the Coast Guard of each
                change in the information on which the issuance of the Certificate of
                Documentation for the vessel is based that occurs before the expiration
                of the certificate under this subsection, by no later than 30 days
                after such change.
                 (b) The Certificate of Documentation for a vessel is terminated
                upon the expiration of the 30-day period if the owner has not notified
                the Coast Guard of such change before the end of the period.
                Sec. 67.515 [Amended]
                0
                5. In Sec. 67.515, remove the word ``annual''.
                0
                6. Revise Sec. 67.550 to read as follows:
                [[Page 5032]]
                Sec. 67.550 Fee table.
                 The fees charged under subpart Y are as set forth in Table 1 to
                67.550.
                 Table 1 to 67.550--Fees
                ------------------------------------------------------------------------
                 Activity Reference Fee
                ------------------------------------------------------------------------
                Applications:
                 Initial Certificate of Subpart K............... $133.00
                 Documentation.
                 Exchange of Certificate of ......do................ 84.00
                 Documentation.
                 Return of vessel to ......do................ 84.00
                 documentation.
                 Replacement of lost or ......do................ 50.00
                 mutilated Certificate of
                 Documentation.
                 Approval of exchange of ......do................ 24.00
                 Certificate of
                 Documentation requiring
                 mortgagee consent.
                 Trade endorsement(s):
                 Coastwise endorsement. Subpart B............... 29.00
                 Coastwise Boaters 46 CFR part 68.......... 29.00
                 endorsement.
                 Fishery endorsement... ......do................ 12.00
                 Registry endorsement.. ......do................ none
                 Recreational ......do................ ..............
                 endorsement.
                 Recreational vessel ........................ 130.00
                 endorsements (5-year).
                 Through December 31, ........................ ..............
                 2021:.
                 4-year ........................ 104.00
                 recreational
                 vessel
                 endorsement.
                 3-year ........................ 78.00
                 recreational
                 vessel
                 endorsement.
                 2-year ........................ 52.00
                 recreational
                 vessel
                 endorsement.
                 1-year ........................ 26.00
                 recreational
                 vessel
                 endorsement.
                ------------------------------------------------------------------------
                Note 1: When multiple trade endorsements are requested on the same
                 application, the single highest applicable endorsement fee will be
                 charged, resulting in a maximum endorsement fee of $29.00. This does
                 not apply to recreational endorsements.
                ------------------------------------------------------------------------
                 Evidence of deletion from Subpart L............... 15.00
                 documentation.
                 Renewal fee............... ......do................ 26.00
                 Commercial vessel ......do................ 26.00
                 endorsements (annual).
                 Recreational vessel ........................ 130.00
                 endorsements (5-year).
                 Through December 31,
                 2021:
                 4-year ........................ 104.00
                 recreational
                 vessel
                 endorsement.
                 3-year ........................ 78.00
                 recreational
                 vessel
                 endorsement.
                 2-year ........................ 52.00
                 recreational
                 vessel
                 endorsement.
                 1-year ........................ 26.00
                 recreational
                 vessel
                 endorsement.
                 Late renewal fee.......... ......do................ \1\ 5.00
                Waivers:
                 Original build evidence... Subpart F............... 15.00
                 Bill of sale eligible for Subpart E............... 15.00
                 filing and recording.
                Miscellaneous applications:
                 Wrecked vessel Subpart J............... 555.00
                 determination.
                 New vessel determination.. Subpart M............... 166.00
                 Rebuild determination-- ......do................ 450.00
                 preliminary or final.
                Filing and recording:
                 Bills of sale and Subpart P............... \2\ 8.00
                 instruments in nature of
                 bills of sale.
                 Mortgages and related Subpart Q............... \2\ 4.00
                 instruments.
                 Notice of claim of lien Subpart R............... \2\ 8.00
                 and related instruments.
                Certificate of compliance:
                 Certificate of compliance. 46 CFR part 68.......... 55.00
                Miscellaneous:
                 Abstract of Title......... Subpart T............... 25.00
                 Certificate of ownership.. ......do................ 125.00
                 Attachment for each ......do................ 10.00
                 additional vessel
                 with same ownership
                 and encumbrance data.
                 Copy of instrument or (\3\)................... (\3\)
                 document.
                ------------------------------------------------------------------------
                \1\ Late renewal fee is in addition to the cost of the endorsement
                 sought.
                \2\ Per page.
                \3\ Fees will be calculated in accordance with 6 CFR part 5, subpart A.
                 Dated: January 8, 2021.
                R.V. Timme,
                Rear Admiral, U.S. Coast Guard,Assistant Commandant for Prevention
                Policy.
                [FR Doc. 2021-00526 Filed 1-15-21; 8:45 am]
                BILLING CODE 9110-04-P
                

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