[Federal Register Volume 87, Number 218 (Monday, November 14, 2022)]
[Rules and Regulations]
[Pages 68270-68310]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-23666]



[[Page 68269]]

Vol. 87

Monday,

No. 218

November 14, 2022

Part III





Department of Homeland Security





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





Coast Guard





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





46 Parts 121, 160, et al.





Survival Craft Equipment--Update to Type Approval Requirements; Final 
Rule

  Federal Register / Vol. 87 , No. 218 / Monday, November 14, 2022 / 
Rules and Regulations  

[[Page 68270]]


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

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Parts 121, 160, 169, 184, and 199

[Docket No. USCG-2020-0107]
RIN 1625-AC51


Survival Craft Equipment--Update to Type Approval Requirements

AGENCY: Coast Guard, Department of Homeland Security (DHS).

ACTION: Final rule.

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

SUMMARY: The Coast Guard is updating the type approval requirements for 
certain types of equipment that survival craft are required to carry on 
U.S.-flagged vessels. This rule will remove Coast Guard type approval 
requirements for nine of these types of survival craft equipment and 
replace them with the requirement that the manufacturer self-certify 
that the equipment complies with a consensus standard.

DATES: This final rule is effective December 14, 2022.
    The incorporation by reference of certain publications listed in 
the rule is approved by the Director of the Federal Register on 
December 14, 2022. The incorporation by reference of certain other 
publications listed in the rule were approved by the Director of the 
Federal Register on October 1, 1996.

ADDRESSES: To view documents mentioned in this preamble as being 
available in the docket, go to https://www.regulations.gov, type USCG-
2020-0107 in the search box and click ``Search.'' Next, in the Document 
Type column, select ``Supporting & Related Material.''

FOR FURTHER INFORMATION CONTACT: For information about this document, 
call or email Ms. Stephanie Groleau, Lifesaving & Fire Safety Division 
(CG-ENG-4), Coast Guard; telephone 202-372-1381, email 
[email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents for Preamble

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

I. Abbreviations

ASTM ASTM, International
BLS U.S. Bureau of Labor Statistics
CFR Code of Federal Regulations
CG-ENG-4 Office of Design and Engineering Standards, Lifesaving & 
Fire Safety Division
CGMIX U.S. Coast Guard Maritime Information Exchange
COA Certificate of approval
DHS Department of Homeland Security
ECEC Employer Costs for Employee Compensation
FDA U.S. Food and Drug Administration
FR Federal Register
IBA Inflatable buoyant apparatus
IBC Code International Code for the Construction and Equipment of 
Ships Carrying Dangerous Chemicals in Bulk
IGC Code Amendments to the International Code for the Construction 
and Equipment of Ships Carrying Liquefied Gases in Bulk
ICR Information collection request
IMO International Maritime Organization
ISO International Organization for Standardization
LSA Code Life-Saving Appliances Code
MISLE Marine Information for Safety and Law Enforcement
NAICS North American Industry Classification System
NPRM Notice of proposed rulemaking
OES U.S. Bureau of Labor Statistics Occupational Employment 
Statistics
OMB Office of Management and Budget
OPM Office of Personnel Management
OTC Over-the-counter
RA Regulatory analysis
SOLAS International Convention for the Safety of Life at Sea
Sec.  Section
U.S.C. United States Code

II. Basis, Purpose, and Regulatory History

    The legal authority for this rule is found in Title 46 of the 
United States Code (U.S.C.) Sections 2103, 3103, 3306, 3703, 4102, 
4302, 4502, 7101, and 8101. The Secretary of the Department of Homeland 
Security (DHS) has delegated these statutory authorities to the Coast 
Guard pursuant to 14 U.S.C. 502 through DHS Delegation No. 00170.1, 
Revision No. 01.2, paragraph (II)(92)(a), (b), (e), and (f). 
Additionally, 14 U.S.C. 102(3) grants the Coast Guard broad authority 
to promulgate and enforce regulations for the promotion of safety of 
life and property on waters subject to the jurisdiction of the United 
States.
    The purpose of this rule is to update the type approval 
requirements for 12 types of survival craft equipment that survival 
craft are required to carry on certain, specified U.S.-flagged 
vessels--bilge pumps, compasses, fire extinguishers, first-aid kits, 
fishing kits, hatchets, jackknives, knives, signaling mirrors, 
provisions (food rations), emergency drinking water, and sea anchors--
as well as some of the survival craft equipment required for sailing 
school vessels. For nine of these types of equipment, this rule will 
replace the Coast Guard type approval requirement with a requirement 
that the manufacturer self-certify that the equipment complies with a 
consensus standard: bilge pumps, compasses, first-aid kits, fishing 
kits, hatchets, jackknives, mirrors, sea anchors, and water. Type 
approval is the primary process for equipment and materials to receive 
Coast Guard approval. Updating type approval requirements for survival 
craft equipment will result in cost savings to equipment manufacturers, 
vessel owners and operators, and the Coast Guard.
    The Coast Guard issued a notice of proposed rulemaking (NPRM) on 
October 5, 2020, and solicited public comment on the proposal during a 
comment period of 60 days.\1\ The comment period closed on December 4, 
2020. The Coast Guard received 13 comment submissions, which are 
discussed later in this document.
---------------------------------------------------------------------------

    \1\ 85 FR 62842.
---------------------------------------------------------------------------

III. Background

    Many of the current requirements for survival craft equipment were 
developed in the 1950s and 1960s and have not been significantly 
updated since they were published. After thorough review of these 
requirements, as well as Coast Guard enforcement procedures, current 
maritime industry practice, and the availability of new consensus 
standards, we believe that the additional scrutiny provided by Coast 
Guard type approval does not increase the safety of the following nine 
types of survival craft equipment: bilge pumps, compasses, first-aid 
kits,\2\ fishing kits, hatchets, knives (including jackknives), 
mirrors, sea anchors, and emergency drinking water.
---------------------------------------------------------------------------

    \2\ Different first-aid kits are required for different survival 
craft, and this is explained in section IV of this rule under First-
Aid Kits.
---------------------------------------------------------------------------

    For these types of equipment, the current Coast Guard type approval 
requirements are outdated and overly prescriptive. This places a burden 
on the equipment manufacturers, which, in turn, affects the design 
costs of complying with the outdated standard, the administrative 
overhead costs, and the time-to-market costs of manufacturing and 
selling equipment.

[[Page 68271]]

The requirements also place a financial burden on the vessel owners and 
operators who are required to carry this specific approved equipment on 
board their survival craft. This equipment is frequently more costly 
and more difficult to obtain than similar products that are not type-
approved. Finally, the requirements place a burden on the Coast Guard 
to review and approve this equipment without commensurate increases in 
safety.

IV. Discussion of Comments

    The Coast Guard received 13 comment submissions in response to the 
NPRM. Of those 13 comments, 1 was a duplicate and 1 was unrelated to 
the rulemaking. The remaining 11 comments were from maritime 
organizations, private companies, and individuals. Four comments we 
classified as general comments, two comments concerned technical 
standards, and five comments concerned first-aid kits. Below, we 
discuss each comment and our responses.

General

    The Coast Guard received four comments on the NPRM that we 
categorized as general comments. One comment supported the proposed 
regulatory changes for approval requirements for first-aid kits. The 
Coast Guard acknowledges this comment.
    Two commenters expressed concerns that removing type approval 
requirements could decrease the quality of survival craft equipment. We 
disagree. Even without a type approval requirement, the following 
checks will remain in place. For emergency drinking water in survival 
craft and rescue boats, the water quality will be verified by the local 
municipality or by an independent laboratory accepted by the Coast 
Guard, as required by 46 CFR 199.175(b)(40). Coast Guard-approved 
liferaft servicing facilities inspect survival equipment packed in 
inflatable liferafts prior to packing. Coast Guard marine inspectors 
also regularly check equipment not packed in inflatable liferafts, such 
as that in a lifeboat or rescue boat, or the first-aid kits carried on 
small passenger vessels, when conducting the required inspections on 
board commercial vessels.
    Additionally, one commenter, a manufacturer of the approved Coast 
Guard items, expressed multiple concerns regarding this rule and the 
Coast Guard's regulatory analysis on its estimate of the impacts in the 
NPRM. This commenter said that removing type approval requirements will 
cause the market to be flooded with substandard products, leading to 
revenue losses to the company. The commenter also said that the 
liferaft and lifeboat industry has consolidated and there is little 
competition, and, therefore, will not pass savings on to consumers.
    For the reasons explained in our response to the two commenters 
above, we do not expect reduced quality in the equipment that is no 
longer required to be type-approved. We therefore do not expect a flood 
of products of reduced quality that drive down prices. With this final 
rule, prescriptive requirements will be replaced by consensus 
standards. Conforming to these international consensus standards will 
maintain the same level of safety without imposing unnecessary burdens 
on the public and provide alternatives for compliance. These compliance 
alternatives should result in cost savings to the directly impacted 
entities, which are manufacturers and vessel owners and operators. The 
Coast Guard does not have adequate industry information or data to 
estimate secondary impacts and indicate whether these savings will be 
passed on to the final consumers or end users of services provided by 
vessel owners and operators.
    The commenter also suggested that some could incur additional 
testing costs as a result of this rule. Based on a review of the new 
and existing standards, the Coast Guard has not found that 
manufacturing firms will have new testing requirements under the 
International Organization for Standardization (ISO) standards.
    The commenter suggested that, as an alternative to the removal of 
type approval requirements, the manufacturer could cover the cost of 
the certificate of approval (COA). Requiring manufacturers to cover the 
cost of the COA would result in additional costs to manufacturers 
without any attendant safety benefits.
    Finally, the commenter asserted that our per-device savings 
estimates are too high and not the going rates in the industry. In 
preparing our economic analysis, we relied primarily on websites 
listing the retail prices of different products that were sold under 
ISO standards instead of Coast Guard standards. We believe that the 
reason our prices appear to be high to the commenter is because our 
analysis was based on retail prices rather than wholesale prices, or 
the prices that manufacturers use to sell their products to businesses. 
Using retail prices is a common approach across Coast Guard rulemaking, 
because we do not have access to consistent wholesale price data across 
the industry.

F1003 and F1014 Standards

    The Coast Guard received two comments recommending incorporation of 
ASTM F1003 (2019), ``Standard Specification for Searchlights on Motor 
Lifeboats,'' and ASTM F1014 (2020), ``Standard Specification for 
Flashlights on Vessels.'' These 2019 and 2020 standards are more recent 
editions of the ASTM standards we proposed to adopt.
    However, these standards were updated after the NPRM was developed, 
and so we were unable to include them in our proposed rule. The more 
recent standards contain significant differences as compared to the 
prior editions (the ones we incorporate in this rule), such that more 
evaluation is necessary. We will consider incorporating these standards 
in a future rulemaking.

First-Aid Kits

    The Coast Guard received five comments concerning the proposed 
changes to first-aid kits. The comments discussed contents of the 
first-aid kits, as well as technical standards that apply to first-aid 
kits.
    Two commenters supported the proposed use of commercially available 
first-aid kits, to remove the burden of assembling very specific kit 
components.
    Three commenters called for specified first-aid kit components, 
rather than leaving the exact number and size of items up to 
manufacturers so long as the kit meets ISO 18813:2006. These commenters 
said the kit contents should be standardized, and expressed concern 
that manufacturers would not provide adequate kits. One commenter also 
said that ISO 18813:2006 is not a widely accepted standard and may soon 
be revised; that commenter suggested the Coast Guard should develop its 
own standard instead. Another commenter supported the use of the ISO 
standard. We believe that the contents described in ISO 18813:2006 are 
sufficient to meet the needs of basic first-aid kits required by 
mariners in a survival situation. The ISO standard specifies design, 
performance, and use of various items of survival equipment carried in 
survival craft and rescue boats complying with the International 
Convention for the Safety of Life at Sea (SOLAS), 1974 (as amended), 
and the International Maritime Organization (IMO) Life-Saving Appliance 
Code (LSA Code). The 2006 edition is the most current version of this 
standard that is available at this time.
    During periodic shipboard inspections by both Coast Guard-licensed 
mariners and Coast Guard

[[Page 68272]]

marine inspectors, first-aid kits not packed in inflatable liferafts 
are examined to ensure that they contain all the items listed in the 
provided instructions, that each unit carton is in an intact waterproof 
package, and that they meet the applicable regulatory requirements. 
First-aid kits packed in inflatable liferafts are inspected by Coast 
Guard-approved liferaft servicing facilities, also to ensure that they 
contain all the required items.
    One commenter specifically called for a particular Coast Guard-
approved watertight soft plastic pouch to contain the first-aid kit, 
because rigid plastic containers can become brittle and because that 
pouch is proven to meet the applicable durability requirements. ISO 
18813:2006 discourages the use of rigid plastic cases that can shatter. 
If the case shatters, an entirely new kit must be purchased because it 
is in a not-as-approved condition, and Coast Guard inspectors would 
give the vessel a deficiency for not having an approved and in-working-
condition piece of equipment. This would increase costs to the vessel.
    One commenter noted that the U.S. Food and Drug Administration 
(FDA) does not routinely approve over-the-counter (OTC) products; it 
only reviews active ingredients. Another comment inquired about the FDA 
regulatory status, product form, or type of delivery for two topical 
preparations in the ISO 18813 requirements.
    It is up to the first-aid kit manufacturer to determine in what 
form the medicinal products are to be provided to meet the intended 
needs of the first-aid kit. However, medicinal products must meet the 
applicable OTC drug requirements outlined in title 21 of the Code of 
Federal Regulations (CFR) part 330, which contains FDA's applicable OTC 
requirements. In response to these comments, in this rule we revised 
the regulatory text of Sec.  199.175(b)(10)(ii) to reference 21 CFR 
part 330.
    One commenter asked that the Coast Guard remove the requirement for 
specific items with an expiration date (such as aspirin) and allow for 
equivalent alternatives. The commenter said that getting supplies 
delivered to remote locations can be challenging. The expiration date 
of OTC medications is typically between one and five years after 
manufacture. The commenter did not specify an alternative item without 
an expiration date, but the Coast Guard believes that a year or more is 
a reasonable period to plan for replacing first-aid supplies. In 
general, the Coast Guard believes that expiration dates are acceptable 
and can help ensure that the first-aid kit is reviewed and refreshed at 
intervals. The Food and Drug Administration requires OTC medications 
have expiration dates (see 21 CFR 211.137 and 211.166).
    The same commenter recommended that vessel operators be allowed to 
exclude analgesics (pain relief medication) from first-aid kits. This 
commenter said that companies often prohibit their vessel crew members 
from giving out analgesic medication because of possible adverse side 
effects or interactions with other medication. In support of this 
recommendation, the commenter said that most passenger vessels operate 
near shore with easy access to shoreside medical services.
    While access to shoreside medical resources may be available in 
certain areas of operation, these should not be relied on to provide 
the required first-aid supplies. Shoreside medical resources will not 
be readily available to someone with an injury or emergency on the 
vessel. The first-aid kit for survival craft is intended to be used in 
an emergency away from shore.
    Licensed mariners operating vessels in commercial service are 
required to have basic first-aid training. Any application of first aid 
should be given at the discretion of the licensed mariner and not at a 
level beyond the training or capability of the mariner administering 
the first aid. Analgesics are common OTC medications that do not 
require medical supervision, and the decision to take them is up to the 
person who requests them. Accordingly, the Coast Guard has decided to 
retain the requirement for analgesics in first-aid kits.

V. Discussion of Final Rule and Changes From NPRM

    This final rule amends several approval and carriage requirements 
in title 46 CFR. Specifically, this final rule updates the requirements 
in part 199, subchapter W, related to the equipment on survival craft 
and rescue boats on inspected vessels by replacing the requirement to 
carry Coast Guard-approved equipment with self-certification to 
voluntary consensus standards for certain equipment. This rule also 
makes conforming changes to part 169, subchapter R, for sailing school 
vessels that are not covered by subchapter W. In addition, this final 
rule revises part 160, subchapter Q, to remove approval standards for 
the survival craft equipment that is no longer required to be approved 
by the Coast Guard, and it updates the requirements for approval of 
emergency provisions to replace prescriptive Coast Guard requirements 
with consensus standards. A new subpart 160.046, Emergency Provisions, 
is added, to consolidate the applicable standards. Finally, this rule 
removes the requirement in part 121, subchapter K, and part 184, 
subchapter T, that first-aid kits carried on small passenger vessels 
must be approved by the Coast Guard, and updates those requirements to 
consensus standards to align with the revised approval requirements.
    This final rule includes incorporation by reference of several 
voluntary consensus standards consistent with the National Technology 
Transfer and Advancement Act of 1995, Public Law 104-113 (codified as a 
note to 15 U.S.C. 272). Three of the consensus standards this rule 
incorporates are international standards: ISO 18813:2006, ``Ships and 
marine technology--Survival equipment for survival craft and rescue 
boats'' (referred to as ISO 18813); ISO 17339:2018, ``Ships and marine 
technology--Sea anchors for survival craft and rescue boats'' (referred 
to as ISO 17339); and ISO 25862:2009, ``Ships and marine technology--
Marine magnetic compasses, binnacles and azimuth reading devices'' 
(referred to as ISO 25862).
    While the IMO does specify some standards for survival craft 
equipment affected by this rule, it does not stipulate that the 
affected survival craft equipment be approved by the Administration. In 
some cases (such as first-aid kits and drinking water), the LSA Code 
references ISO 18813 as an acceptable standard for the equipment to 
meet, whereas in others (such as fishing tackle), the LSA Code merely 
requires that the equipment be carried aboard the specified survival 
craft.
    A more detailed explanation of the amendments to the aforementioned 
sections can be found in the NPRM. A number of non-substantive changes 
from the NPRM are made with this final rule to correct typographical, 
grammar, and format errors or issues, as well as for clarification 
purposes.
    Lastly, as a result of public comment, this final rule requires 
that medicinal products meet the applicable OTC drug requirements as 
outlined in 21 CFR part 330. This administrative change is simply 
updating an improper reference.

VI. Incorporation by Reference

    Material incorporated by reference is currently listed in 46 CFR 
199.05 and is added to the new Sec.  160.046-3. Under 5 U.S.C. 552(a) 
and 1 CFR part 51, a publication is eligible for incorporation by 
reference if it meets Office of the Federal Register policies and is 
reasonably available to and usable by the class of persons affected.

[[Page 68273]]

Regulations in part 51 require that agencies discuss, in the final 
rule, ways that the materials the agency incorporates by reference are 
reasonably available, to interested parties and how interested parties 
can obtain the materials. In addition, the preamble to the final rule 
must summarize the material.
    In accordance with the OFR's requirements, section VII.L. of this 
final rule summarizes the standards that the Coast Guard incorporates 
by reference in Sec. Sec.  160.046-3 and 199.05. Interested persons 
have access to this material through their normal course of business, 
may purchase it from the organization, or may view a copy at Coast 
Guard Headquarters.

VII. Regulatory Analyses

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

A. Regulatory Planning and Review

    Executive Orders 12866 (Regulatory Planning and Review) and 13563 
(Improving Regulation and Regulatory Review) direct agencies to assess 
the costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility.
    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. A regulatory 
analysis (RA) follows.
    The Coast Guard received several public comments on the NPRM, as 
discussed in section IV. of the preamble to this final rule. In 
response to a comment, in this final rule we are making an editorial 
change to 46 CFR 199.175(b)(10) that has no cost impact. See table 1.
    Additionally, we are replacing prescriptive requirements with 
international standards that provide alternatives for compliance, which 
should result in cost savings to impacted entities. We also made some 
changes to the regulatory analysis, including updating the population 
of affected entities, and the wage rate using 2020 estimates, and 
removing the renewal instruction, because it is not applicable to this 
rule.

                                    Table 1--Changes From NPRM to Final Rule
----------------------------------------------------------------------------------------------------------------
               Section                  Description of change         Explanation         Cost impact of change
----------------------------------------------------------------------------------------------------------------
Sec.   199.175(b)(10)................  Editorial change that    Update the language to   No impact because it is
                                        corrects a reference.    correctly discuss the    updating an improper
                                                                 FDA's drug approval      reference.
                                                                 process.
----------------------------------------------------------------------------------------------------------------

    With this final rule, the Coast Guard removes the requirement for 
nine types of survival craft equipment to be approved by the Coast 
Guard from 46 CFR part 160 in subchapter Q (Equipment, Construction, 
and Materials: Specifications and Approval) and from Sec.  199.175 
(Survival Craft and Rescue Boat Equipment). The requirement for 
approvals on these nine types of equipment (bilge pumps, compasses, 
first-aid kits, fishing kits, hatchets, jackknives, mirrors, sea 
anchors, and water) will be replaced by a self-certification 
requirement, in order to comply with the LSA Code. For those types of 
equipment that still require a COA, we do not estimate any changes in 
costs or cost savings.\3\ Finally, this rule updates the survival craft 
requirements for sailing school vessels found in Sec. Sec.  169.525 
through 169.529, eliminating the unique requirements for survival craft 
equipment on these vessels.
---------------------------------------------------------------------------

    \3\ Knives are not required to be Coast Guard-approved; however, 
they must meet the requirements in Section 4.1.5.1.2 of the LSA 
Code. This is an administrative change that will lead to no cost or 
cost savings.
---------------------------------------------------------------------------

    Table 2 provides a summary of the affected population, costs, cost 
savings, and benefits of this rule. The affected population includes 
the manufacturers of survival craft equipment and the vessels equipped 
with survival craft. We estimate the cost savings to manufacturers by 
reducing reporting, recordkeeping, and production requirements of this 
survival craft equipment. We estimate the cost savings to vessel owners 
and operators by the price reductions in survival craft equipment, and 
we estimate the cost savings for the Government for reducing the review 
necessary for certain equipment. We estimate an annualized cost savings 
to industry of $303,805 (with a 7-percent discount rate) and an 
annualized cost savings to the Government of $10,087, for a total 
annualized cost savings of $313,892.\4\
---------------------------------------------------------------------------

    \4\ This analysis assumes the implementation year for this rule 
will be 2021.

  Table 2--Summary of the Affected Population, Costs, Cost Savings, and
                                Benefits
------------------------------------------------------------------------
           Category                             Summary
------------------------------------------------------------------------
Applicability................  Revises the approval requirements
                                specific to nine types of survival craft
                                equipment by removing the Coast Guard
                                type approval requirements and, instead,
                                adopting a voluntary consensus standard,
                                ISO 18813, ``Ships and marine
                                technology--Survival equipment for
                                survival craft and rescue boats.'' Also
                                retains requirements for Coast Guard
                                approval of emergency provisions, but
                                revises the requirements to refer to ISO
                                18813 instead of prescriptive Coast
                                Guard regulations.
Affected Population..........  Includes 16 manufacturers of 28 unique
                                Coast Guard-approved products for 9
                                types of equipment; 14,747 existing U.S.-
                                flagged vessels with 31,729 survival
                                craft; and 113 new U.S.-flagged vessels
                                annually with 449 survival craft.
Costs........................  There will be no costs to industry or the
                                Federal Government as this rule will
                                reduce the burden(s).
Benefits.....................  There are non-monetary benefits to owners
                                and operators of vessels with survival
                                craft in having a larger selection of
                                equipment to choose from, allowing for
                                potential operational flexibility.
Industry Cost Savings *......  Annualized: -$303,805, 10-Year: -$2.13
                                million.

[[Page 68274]]

 
Government Cost Savings......  Annualized: -$10,087, 10-Year: -$70,847.
Total Cost Savings...........  Annualized: -$313,892, 10-Year: -$2.20
                                million.
------------------------------------------------------------------------
* The Industry Cost Savings, Government Cost Savings, and Total Cost
  Savings are all discounted at 7 percent.

Affected Population
    This rule impacts three separate affected populations. First, this 
rule impacts manufacturers of Coast Guard-approved equipment because it 
changes the standards and approval process for nine types of survival 
craft equipment. Second, this rule impacts any new and existing U.S.-
flagged vessels that carry survival craft because it will reduce the 
cost of buying and replacing survival craft equipment. Third, this rule 
impacts small passenger vessels inspected under subchapter K or T. They 
are required to maintain a separate first-aid kit stowed on board, and 
this rule reduces the cost of replacing first-aid kits. This rule also 
removes Table 169.527 from part 169 and removes the requirements for 
equipment outlined in Sec.  169.529(a) through (mm) to conform to the 
changes made in 46 CFR part 199.
    Data on manufacturers comes from the U.S. Coast Guard Maritime 
Information Exchange (CGMIX),\5\ which is a public-facing version of 
the Marine Information for Safety and Law Enforcement (MISLE) database, 
unless otherwise specified. For each subchapter of inspected vessels 
that are required to carry survival craft, we used the MISLE database 
to estimate the number of vessels that will be affected by this rule.
---------------------------------------------------------------------------

    \5\ https://cgmix.uscg.mil/.
---------------------------------------------------------------------------

Manufacturers of Coast Guard Approved Equipment
    The Coast Guard is eliminating approval requirements for nine types 
of survival craft equipment, discussed in detail in section V of this 
rule. These nine types of equipment include: (1) bilge pumps, (2) 
compasses, (3) first-aid kits for lifeboats and for liferafts, (4) 
fishing kits, (5) hatchets, (6) jackknives, (7) signaling mirrors, (8) 
sea anchors, and (9) emergency drinking water. For these 9 types of 
survival equipment, there are 28 unique Coast Guard type-approved 
products.\6\ This rule impacts manufacturers of products currently on 
the market as well as newly approved products. Currently approved 
products in use on survival craft will remain acceptable for the 
purpose of carriage after this rule's implementation.
---------------------------------------------------------------------------

    \6\ Type Approval is the primary process for equipment and 
materials to receive Coast Guard approval. The certificate is valid 
for 5 years, and the approval is listed on the CGMIX.
---------------------------------------------------------------------------

    The 2019 information collection request (ICR) ``Supporting 
Statement for Title 46 CFR Subchapter Q: Lifesaving, Electrical, 
Engineering and Navigation Equipment, Construction and Materials & 
Marine Sanitation Devices (33 CFR part 159)'' (OMB Control Number: 
1625-0035) estimates that companies will seek Coast Guard approval for 
3 percent of the number of survival craft equipment product types on 
the market each year. The Coast Guard estimates that each new product 
approval replaces a preexisting product approval, such that the total 
number of approved products will not change each year, as the number of 
newly approved products has historically been small.
    Table 3 presents the annual average of new products each year for 
the nine types of survival craft equipment. To calculate the annual 
average of new products, we multiplied the values in the ``Number of 
Approved Products'' column (a), which contains the number of existing 
approved products for each type of survival craft equipment, by 3 
percent, from the ``Percentage of New Approvals Each Year'' column, 
(b).

                        Table 3--Number of Products Currently Approved by the Coast Guard
----------------------------------------------------------------------------------------------------------------
                                                                                                      Annual
                                                                     Number of    Percentage  of      average
                    Equipment                        Approval        approved     new  approvals   number of new
                                                      series        products *      each year **   products each
                                                                                                       year
                                                                             (a)             (b)     (c) = (a) x
                                                                                                             (b)
----------------------------------------------------------------------------------------------------------------
Bilge pump......................................         160.044               3               3            0.09
Compass.........................................         160.014               3               3            0.09
First-aid kit for Lifeboats.....................         160.041               5               3            0.15
First-aid kit for Liferafts.....................         160.054               5               3            0.15
Fishing kit.....................................         160.061               1               3            0.03
Hatchet.........................................         160.013               1               3            0.03
Jackknife.......................................         160.043               1               3            0.03
Mirror, Signalling..............................         160.020               2               3            0.06
Sea anchor......................................         160.019               1               3            0.03
Water...........................................         160.026               6               3            0.18
                                                 ---------------------------------------------------------------
    Total.......................................  ..............              28  ..............               1
----------------------------------------------------------------------------------------------------------------
Sources:
* CGMIX data pull, March 2021.
** ``Supporting Statement for Title 46 CFR Subchapter Q: Lifesaving, Electrical, Engineering and Navigation
  Equipment, Construction and Materials & Marine Sanitation Devices (33 CFR 159)'' (OMB Control Number: 1625-
  0035).
Note: Values may not sum due to rounding.


[[Page 68275]]

U.S.-Flagged Vessels That Carry Coast Guard-Approved Equipment
    This rule impacts a total of 14,747 existing vessels. These 
vessels, which are categorized by subchapter, are required to carry 
survival craft in accordance with the applicable regulations. Of these 
vessels, we estimate the total amount of survival craft maintained by 
the affected population to be 31,729. Table 4 shows the breakdown of 
the survival craft across the existing vessel population as follows: 
2,612 inflatable buoyant apparatuses (IBAs), 23,748 liferafts, 2,835 
lifeboats, and 2,534 rescue boats.

                                                      Table 4--Vessel and Survival Craft Population
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               IBAs         Inflatable       Lifeboats     Rescue boats    All survival
                                                           Total number  ----------------    liferafts   --------------------------------      craft
            Subchapter                 Type of vessel     of vessels (a)                 ----------------                                ---------------
                                                                             Total (b)       Total (c)       Total (d)       Total (e)       Total (f)
--------------------------------------------------------------------------------------------------------------------------------------------------------
C.................................  Commercial Fishing             6,022             248           6,267             141              52           6,708
                                     Vessels.
C.................................  Uninspected                      173              10             258               2               7             277
                                     Passenger Vessels.
D.................................  Tank................             323               3             706             543              49           1,301
H.................................  Passenger...........             191             640             444              91             286           1,461
I.................................  Cargo...............           1,037               3           3,247           1,200             618           5,068
I-A...............................  Mobile Offshore                   57               0             263             623              37             923
                                     Drilling Units.
K.................................  Small Passenger.....             311             512             950               2             164           1,628
L.................................  Offshore Supply                  338               0           1,393              55             322           1,770
                                     Vessels.
M.................................  Towing Vessels......           1,434              91           1,485               2              51           1,629
R.................................  Nautical Schools....              29               2             140              79              22             243
R.................................  Sailing Schools.....              10               0              24               1               7              32
T.................................  Small Passenger.....           4,231           1,025           7,506               5             830           9,366
U.................................  Oceanographic                     74               3             260              53              36             352
                                     Research.
Other Vessels.....................  ....................             517              75             805              38              53             971
                                                         -----------------------------------------------------------------------------------------------
    Total.........................  14,747..............           2,612          23,748           2,835           2,534          31,729
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Table 5 presents vessels by the subchapter to which they are 
inspected in 46 CFR. ``Other vessels'' includes public and recreational 
vessels not subject to inspection. The owners and operators of the 
14,747 identified vessels will experience cost savings from the lower 
estimated cost of replacing equipment. We used this existing vessel 
population data from MISLE and multiplied it by the average number of 
IBAs, liferafts, lifeboats, and rescue boats per vessel, which we also 
retrieved from MISLE, to obtain our estimated survival craft 
population. The estimated survival craft population is the number of 
survival craft that will need to replace non-durable Coast Guard-
approved equipment over the next 10 years. The replacement equipment 
will be less expensive, because the replacement equipment will not need 
Coast Guard approval. Those vessels with previously approved survival 
craft equipment will not be required to replace their survival craft 
equipment until the equipment expires or becomes unserviceable.
    After establishing the existing number of current survival craft, 
we then estimated the growth in the number of survival craft each year 
in order to project our affected population for the next 10 years. To 
calculate the number of new survival craft each year, we multiplied the 
``Number of New Vessels per Year'' by each ``Average per Vessel'' 
column to obtain our annual totals for each new survival craft type.\7\ 
We estimate that 25 new IBAs, 222 new liferafts, 33 new lifeboats, and 
31 new rescue boats will be outfitted with equipment subject to this 
rule each year.
---------------------------------------------------------------------------

    \7\ We calculate the ``Number of New Vessels per Year'' column 
by taking the total number of new vessels by subchapter by year from 
the MISLE database, and the ``Average per Vessel'' column by 
dividing column (b) by column (a) in table 4.
---------------------------------------------------------------------------

    We then sum the totals for each survival craft type across each 
affected subchapter to obtain our estimated population of new survival 
craft each year for this final rule. This annual growth in the survival 
craft population provides an estimate of the number of new survival 
craft that will enter the market each year. The vessel owners and 
operators of these craft will experience cost savings from buying some 
equipment, as discussed in this final rule, which will no longer need 
Coast Guard approval. Table 5 presents the estimated total number of 
new survival craft each year.

                                                                           Table 5--Average Survival Craft per Vessel
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    IBAs              Inflatable liferafts            Lifeboats               Rescue boats
                                                                             New vessels -------------------------------------------------------------------------------------------------------
                 Subchapter                          Type of vessel            per year   Average per               Average per               Average per               Average per
                                                                                             vessel       Total        vessel       Total        vessel       Total        vessel       Total
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
C..........................................  Commercial Fishing Vessels....           19         0.04            1         1.04           20         0.02            0         0.01            0
C..........................................  Uninspected Passenger Vessels.            1         0.06            0         1.49            1         0.01            0         0.04            0
D..........................................  Tank..........................            5         0.01            0         2.19           11         1.68            8         0.15            1

[[Page 68276]]

 
H..........................................  Passenger.....................            2         3.35            7         2.32            5         0.48            1         1.50            3
I..........................................  Cargo.........................            9            0            0         3.13           28         1.16           10         0.60            5
I-A........................................  Mobile Offshore Drilling Units            1            0            0         4.61            5        10.93           11         0.65            1
K..........................................  Small Passenger...............            5         1.65            8         3.05           15         0.01            0         0.53            3
L..........................................  Offshore Supply Vessels.......           11            0            0         4.12           45         0.16            2         0.95           10
M..........................................  Towing Vessels................           22         0.06            1         1.04           23            0            0         0.04            1
R..........................................  Nautical Schools..............            0         0.07            0         4.83            0         2.72            0         0.76            0
R..........................................  Sailing Schools...............            0            0            0         2.40            0         0.10            0         0.70            0
T..........................................  Small Passenger...............           35         0.24            8         1.77           62            0            0         0.20            7
U..........................................  Oceanographic Research........            1         0.04            0         3.51            4         0.72            1         0.49            0
Other Vessels..............................  Other Vessels.................            2         0.15            0         1.56            3         0.07            0         0.10            0
                                                                            --------------------------------------------------------------------------------------------------------------------
    Total..................................  ..............................          113            6           25           37          222           18           33            7           31
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Subchapters K and T Vessels
    This rule also affects all U.S.-flagged vessel operators regulated 
under subchapters K and T, as these vessel operators are required to 
maintain a Coast Guard-approved first-aid kit onboard their vessels, in 
addition to any first-aid kits carried in the survival craft. The 
owners and operators of these small passenger vessels will no longer be 
required to maintain Coast Guard-approved first-aid kits aboard the 
vessels themselves. Using MISLE data, we estimate there to be 5,982 
existing small passenger vessels, with 40 new vessels being built on an 
annual basis. This number includes all small passenger vessels defined 
in subchapters K and T, found in Sec. Sec.  121.710 and 184.710, 
respectively, regardless of what type of survival craft they have on 
board.
Equipment Type for Each Survival Craft
    The type of equipment each survival craft is required to carry 
varies depending on the intended use of the survival craft. Generally, 
survival craft intended for longer (international) voyages require more 
equipment than those intended to be used closer to shore. Lifeboats on 
inspected vessels generally must carry an equipment pack for an 
international voyage.\8\ Table 6 contains the equipment required by 
pack and type of survival craft.
---------------------------------------------------------------------------

    \8\ With the exception of lifeboats on sailing school vessels, 
which must carry the equipment required in Sec. Sec.  169.527 and 
169.529.

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

[[Page 68277]]

[GRAPHIC] [TIFF OMITTED] TR14NO22.000


[[Page 68278]]


Equipment Pack Types for Commercial Fishing Vessels
    Commercial fishing vessels must be equipped with either a Coastal 
Service pack, a SOLAS A pack, or a SOLAS B pack, depending on vessel 
size, distance traveled, whether the ocean route is designated as a 
cold-water route or warm-water route, and the number of persons on 
board. Table 7 provides a brief description of the packs that can be 
carried by lifeboats and liferafts.\9\
---------------------------------------------------------------------------

    \9\ Readers can find more information on inflatable liferafts 
for domestic service at https://ecfr.io/Title-46/sp46.6.160.160_1051.

    Table 7--Description of Packs carried by Lifeboats and Liferafts
------------------------------------------------------------------------
         Type of pack                           Contents
------------------------------------------------------------------------
Coastal Service pack.........  A Coastal pack will contain a Sea Anchor
                                (Automatically Deployed), Floating/Heavy
                                Line (Length 100 feet), Rain Water
                                Collector, Floatable Knife, Waterproof
                                Equipment Bag, Raft Use Instructions,
                                Individual Thermal Protective Aids (2
                                nos.), Floatable Paddles (1 pair),
                                Manual Inflation/Bilge Pump, Repair
                                Clamps (6 nos.), Adhesive and Patch
                                Repair Kit.
SOLAS B pack.................  In addition to the items listed in the
                                Coastal pack, a SOLAS B pack will
                                contain: Waterproof Flashlight, a Spare
                                Flashlight Bulb, Spare Flashlight ``D''
                                Cell Batteries (3 nos.), Sponges (2
                                nos.), Bailer, SOLAS Handheld Flares (3
                                nos.), SOLAS Rocket Parachute Flares (2
                                nos.) Buoyant Smoke Signal (1 no.),
                                Seasick Bags (1 per person), Water
                                Storage Bag, Thermal Protective Aid,
                                Heliograph Mirror (for signaling), First-
                                Aid Kit, Signaling Whistle, Anti-
                                Seasickness Pills (6 Per Person), Spare
                                Sea Anchor.
SOLAS A pack.................  In addition to the items listed in the
                                Coastal pack and the items listed in
                                SOLAS B, a SOLAS A pack will include: a
                                Graduated Drinking Cup, Drinking Water
                                (6 to 20 Person Capacity), Food Ration
                                (10kj per Person), Can Opener, Fishing
                                Kit, SOLAS Handheld Flares (Total 6
                                nos.) and a SOLAS Rocket Parachute Flare
                                (Total 4 nos.).
------------------------------------------------------------------------

Equipment Pack Types for Survival Craft
    We used vessel route types from MISLE to estimate the percentage of 
vessels with a SOLAS A pack compared to a SOLAS B pack. We presume that 
all vessels with ``Ocean'' listed as a route type carry survival craft 
with SOLAS A packs. We estimate the remaining route types, not listed 
as ``Ocean,'' will have SOLAS B packs. Using commercial fishing vessel 
data from MISLE and knowledge from subject matter experts from the 
Coast Guard's Lifesaving & Fire Safety Division (CG-ENG-4), who 
specialize in survival craft data, we estimate that 50 percent of non-
oceangoing fishing vessels will have Coastal Service packs and 50 
percent of non-oceangoing fishing vessels will have SOLAS B packs.
    We created a distribution of SOLAS A, SOLAS B, and Coastal Service 
packs by pulling all U.S.-flagged vessels by the inspection subchapter 
and then pulling these vessels by route type from the MISLE database. 
We excluded any vessels that did not have survival craft or had an 
unknown field for survival craft in the MISLE database. The route-type 
designation included ``Ocean'' for oceangoing vessels in MISLE, which 
we designated as SOLAS A vessels.\10\ We designated the remainder as 
SOLAS B vessels, except for commercial fishing vessels.\11\ We then 
calculated the number of SOLAS A packs by dividing the population of 
our vessels (by subchapter) by the sum of vessels that had ``Ocean'' 
routes and dividing that sum by the sum of vessels in that given 
subchapter. To calculate the percentage of SOLAS B packs, we simply 
subtracted the number of SOLAS A packs from 100 percent. This data pull 
provided the total number of inflatable liferafts and lifeboats, 
respectively, and the percentage of each survival craft pack type by 
subchapter, which is presented in table 8.
---------------------------------------------------------------------------

    \10\ The ``Ocean'' designation in MISLE specifically refers to 
vessels with SOLAS certificates that designate them as SOLAS A 
vessels. The MISLE data being pulled is from 2008-2020.
    \11\ We broke out the Coastal routes and short international 
routes by vessel, because Commercial Fishing Vessels are the only 
type of vessels in our affected population that will carry Coastal 
Service packs instead of only having SOLAS B packs for short 
international shipping routes.

              Table 8--Percentage of Equipment Pack Types for Lifeboats and Liferafts by Subchapter
----------------------------------------------------------------------------------------------------------------
                                                                                       Short
                                   Total number      Number of        Coastal     international/  International/
         Type of vessel           of vessels (a)    oceangoing     service pack     SOLAS B (d)     SOLAS A (e)
                                                    vessels (b)    (c) (percent)     (percent)       (percent)
----------------------------------------------------------------------------------------------------------------
Commercial Fishing (Subchapter             6,022            3387              22              22              56
 C).............................
Uninspected Passenger                        173             105  ..............              39              61
 (Subchapter C).................
Tank (Subchapter D).............             323             313  ..............               3              97
Passenger (Subchapter H)........             191              67  ..............              65              35
Cargo and Miscellaneous                     1037             974  ..............               6              94
 (Subchapter I).................
Mobile Offshore Drilling Units                57              55  ..............               4              96
 (Subchapter I-A)...............
Small Passenger (Subchapter K)..             311               6  ..............              98               2
Offshore Supply (Subchapter L)..             338             335  ..............               1              99
Towing (Subchapter M)...........            1434            1123  ..............              22              78
Nautical Schools (Subchapter R).              29              28  ..............               3              97
Sailing Schools (Subchapter R)..              10               2  ..............              80              20
Small Passenger (Subchapter T)..            4231             872  ..............              79              21
Oceanographic Research                        74              42  ..............              43              57
 (Subchapter U).................
Other...........................             517             300  ..............              42              58
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.


[[Page 68279]]

    We then estimated the number of liferafts and lifeboats by 
equipment pack type for existing and new vessels by looking at the 
total number of packs carried by lifeboats and liferafts. Table 9 
presents the number of SOLAS A, SOLAS B, and Coastal Service packs by 
liferaft and lifeboat for each subchapter of vessels.
    We calculated the total number of inflatable liferafts with Coastal 
Service Packs (column (a) in table 9) by multiplying the percentage of 
Coastal Service Packs in liferafts and lifeboats (column (c) in table 
8) by the total number of inflatable liferafts by subchapter (column 
(c) in table 4). We calculated column (b) in table 9, ``Short 
International/SOLAS B packs for inflatable liferafts,'' by multiplying 
column (d) in table 8, which is the percentage of Short International/
SOLAS B packs by vessel subchapter, by column (c) in table 4, which is 
the total number of inflatable liferafts by subchapter. We calculated 
column (c) in table 9, ``International/SOLAS A packs for liferafts,'' 
by multiplying column (e) in table 8, which is the percentage of 
International/SOLAS A packs by vessel subchapter, by column (c) in 
table 4, which is the total number of inflatable liferafts by 
subchapter. We calculated column (e) in table 9, ``Short International/
SOLAS B packs for lifeboats,'' by taking the sum of multiplying columns 
(c) and (d), the percentages of Coastal packs and Short International/
SOLAS B packs in table 8 by column (d) in table 4, which is the total 
number of lifeboats by subchapter. Finally, we calculated column (f) in 
table 9, ``International/SOLAS A packs for lifeboats'' by multiplying 
column (e) from table 8, which is the percentage of International 
Packs/SOLAS A, by column (d) in table 4, which is the total number of 
lifeboats by subchapter.
BILLING CODE 9110-04-P

[[Page 68280]]

[GRAPHIC] [TIFF OMITTED] TR14NO22.001

    Table 10 presents the total number of new packs needed each year 
for new survival craft. We calculated this table by taking the number 
of new lifeboats and liferafts presented in table 5 and multiplying 
that figure by the

[[Page 68281]]

distribution in table 8 to obtain the number of new packs needed for 
the new liferafts and lifeboats on vessels each year.
BILLING CODE 9110-04-C

                       Table 10--Lifeboats and Liferafts by Equipment Pack Type Needed on an Annual Basis Broken Out by Subchapter
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Inflatable liferafts                                          Lifeboats
                                         ---------------------------------------------------------------------------------------------------------------
             Type of vessel                                    Short                                           Short
                                              Coastal     international/  International/       Total      international/  International/       Total
                                           service pack       SOLAS B         SOLAS A                         SOLAS B         SOLAS A
--------------------------------------------------------------------------------------------------------------------------------------------------------
Commercial Fishing (Subchapter C).......               4               5              11              20               0               0               0
Uninspected Passenger (Subchapter C)....  ..............               0               1               1               0               0               0
Tank (Subchapter D).....................  ..............               0              11              11               0               8               8
Passenger (Subchapter H)................  ..............               3               2               5               1               0               1
Cargo and Miscellaneous (Subchapter I)..  ..............               2              26              28               1               9              10
Mobile Offshore Drilling Units            ..............               0               5               5               0              11              11
 (Subchapter I-A).......................
Small Passenger (Subchapter K)..........  ..............              15               0              15               0               0               0
Offshore Supply (Subchapter L)..........  ..............               0              45              45               0               2               2
Towing (Subchapter M)...................  ..............               5              18              23               0               0               0
Nautical Schools (Subchapter R).........  ..............               0               0               0               0               0               0
Sailing Schools (Subchapter R)..........  ..............               0               0               0               0               0               0
Small Passenger (Subchapter T)..........  ..............              49              13              62               0               0               0
Oceanographic Research (Subchapter U)...  ..............               2               2               4               0               1               1
Other Vessels...........................  ..............               1               2               3               0               0               0
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................               4              82             136             222               2              31              33
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Values may not sum due to rounding.

Benefits
    In addition to the nonquantified benefits discussed in table 2, 
this rule will generate a cost savings as follow:
Cost Savings
    This rule will generate a cost savings to: (1) vessel owners and 
operators from having the option to purchase less expensive survival 
craft equipment; (2) equipment manufacturers from reducing reporting, 
recordkeeping, and production requirements of survival craft equipment; 
and (3) the Federal Government from reducing recordkeeping 
requirements. The details and calculations of the cost savings are 
discussed later in this final rule.
Wages
    This rule will reduce the burden of review that is required by both 
industry and the Federal Government. This review includes preparing COA 
applications, renewals, and product instructions by certain 
manufacturers. We presume clerical employees will be responsible for 
all the manufacturer's recordkeeping activities, and production 
employees will be responsible for marking equipment and packing 
instructions. Federal Government employees who possess the technical 
knowledge to review submissions to ensure safety standards will be 
senior engineers at the GS-14 grade. These employees will be 
responsible for the review of all the submitted information.
    We calculate the costs for each activity by estimating the labor 
hours required in each labor category and then multiplying those 
burdens by the wage rate for each labor category. For this analysis, we 
calculated private sector wages using 2020 wage data from the U.S. 
Bureau of Labor Statistics (BLS) Occupational Employment Statistics 
(OES) for the miscellaneous manufacturing sector (North American 
Industry Classification System (NAICS) 339000).\12\ We added a load 
factor to the industry wages using December 2020 wage and total 
compensation data from the BLS Employer Costs for Employee Compensation 
(ECEC) survey, which accounts for employee benefits. This load factor 
represents the total benefits as a percentage of total salary.\13\ 
Table 11 summarizes the loaded wage rates for industry used in this RA.
---------------------------------------------------------------------------

    \12\ https://www.bls.gov/oes/2020/may/naics3_339000.htm.
    \13\ A loaded labor rate is what a company pays per hour to 
employ a person beyond the hourly wage. Instead, the loaded labor 
rate includes the cost of benefits (health insurance, vacation, 
etc.). We calculate the load factor for wages by dividing total 
compensation by wages and salaries. For this analysis, we used BLS' 
Employer Cost for Employee Compensation/Manufacturing Occupations, 
Private Industry report (Series IDs, CMU2013000000000D and 
CMU2023000000000D for all workers using the multi-screen data 
search). Using 2020 Quarter 4 Manufacturing data, we divided the 
total compensation amount of $40.02 by the wage and salary amount of 
$26.56 to get the load factor of 1.51 ($40.02 divided by $26.56). 
This data is found in table 4 of the Employer Costs for Employee 
Compensation December 2020 News Release available at Employer Costs 
for Employee Compensation Archived News Releases: U.S. Bureau of 
Labor Statistics (bls.gov).

                                                 Table 11--Derivation of 2020 Loaded Industry Wage Rates
                                                             [Rounded to the nearest dollar]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    2020 hourly wage     Load factor      Loaded hourly
                                                                                                   ------------------------------------       wage
              Personnel  category                                  Data source(s)                                                      -----------------
                                                                                                           (a)               (b)         (c) = (a) x (b)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Technical......................................  Wage Rate: Mean hourly wage for Industrial                   $44.10              1.51               $67
                                                  Engineers, including Health and Safety:
                                                  Occupation code (17-2110) under the
                                                  miscellaneous manufacturing sector (NAICS
                                                  339000) from the BLS OES. Link: https://www.bls.gov/oes/2020/may/naics3_339000.htm#17-0000 0000.

[[Page 68282]]

 
                                                 Loading Factor: Calculated from December 2020 BLS
                                                  ECEC non-seasonally adjusted data for wage and
                                                  salaries (CMU2013000000000D) and total
                                                  compensation (CMU2023000000000D) for private
                                                  industry workers in the miscellaneous
                                                  manufacturing sector.
Clerical.......................................  Wage Rate: Mean hourly wage for Information and              $19.87              1.51               $30
                                                  Record Clerks: Occupation code (43-4000) under
                                                  the miscellaneous manufacturing sector (NAICS
                                                  339000) from the BLS OES. Link: https://www.bls.gov/oes/2020/may/naics3_339000.htm#43-4000 4000.
                                                 Loading Factor: Calculated from December 2020 BLS
                                                  ECEC non-seasonally adjusted data for wage and
                                                  salaries (CMU2013000000000D) and total
                                                  compensation (CMU2023000000000D) for private
                                                  industry workers in the manufacturing sector.
Production.....................................  Wage Rate: Mean hourly wage for Assemblers:                  $17.22              1.51               $26
                                                  Occupation code (51-2000) in the miscellaneous
                                                  manufacturing sector (NAICS 339000) from the BLS
                                                  OES. Link: https://www.bls.gov/oes/2020/may/naics3_339000.htm#51-2000.
                                                 Loading Factor: Calculated from December 2020 BLS
                                                  ECEC non-seasonally adjusted data for wage and
                                                  salaries (CMU2013000000000D) and total
                                                  compensation (CMU2023000000000D) for private
                                                  industry workers in the manufacturing sector.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Values may not sum due to rounding.

    For Federal Government employees, The Office of Personnel 
Management (OPM) lists the hourly pay for Federal employees according 
to the Washington, DC area General Schedule (GS) pay tables.\14\ OPM 
records the hourly pay of GS-14, step 5 (the midpoint of the pay band) 
as $65.88. We calculate the share of total compensation of Federal 
employees to account for a government employee's non-wage benefits. The 
Congressional Budget Office (2017) reports total compensation to 
Federal employees as $64.80 per hour and wages as $38.30.\15\ We 
determine the load factor to be approximately 1.69.\16\ We multiplied 
$65.88 by 1.69 to obtain a loaded hourly wage rate of approximately 
$111.34 for a GS-14 senior engineer.
---------------------------------------------------------------------------

    \14\ https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/20Tables/html/DCB_h.aspx.
    \15\ Congressional Budget Office (2017), ``Comparing the 
Compensation of Federal and Private-Sector Employees, 2011 to 
2015,'' https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/52637-federalprivatepay.pdf.
    \16\ $64.80 divided by 38.30.
---------------------------------------------------------------------------

Cost Savings to Equipment Manufacturers
    We estimate that manufacturers of Coast Guard-approved equipment 
will have a cost savings associated with no longer having to complete 
applications to obtain and maintain Coast Guard approval. In addition, 
this rule will remove recordkeeping and reporting requirements, and 
reduce testing requirements for some pieces of survival equipment.
Number of Survival Craft Products
    This rule modifies the approval requirements for nine categories of 
survival craft equipment. In total, there are 28 approvals for these 9 
categories of survival craft equipment. These are the specific items 
that vessel owners and operators purchase to comply with the vessel 
carriage regulations found in 46 CFR chapter I, subchapters C, T, K, 
and W.\17\ These items are required to be stowed on board survival 
craft.
---------------------------------------------------------------------------

    \17\ Refer to the appendix titled ``Appendix C: Carriage 
Requirements for all the Survival Craft Equipment'' in the docket 
folder for more information on carriage requirements for all vessels 
affected by this final rule.
---------------------------------------------------------------------------

    To comply with the lifesaving equipment regulations in 46 CFR 
chapter I, subchapter Q, manufacturers submit an application to the 
Coast Guard for review and approval. Once approved, the manufacturer of 
each piece of equipment must mark it (or stamp it) with its approval 
number (see table 12).
    There are two types of survival craft equipment: (1) items that are 
durable and need not be replaced or serviced frequently, such as bilge 
pumps, compasses, fishing kits,\18\ jackknives, signaling mirrors, 
hatchets, and sea anchors; and (2) items that are not durable, expire, 
and must be replaced, such as first-aid kits and emergency drinking 
water. We used the annual total number of pieces of survival craft 
equipment needed to stock new survival craft in order to forecast the 
number of new pieces of equipment manufactured and stamped on an annual 
basis. We estimate that, in the long term, the supply of new survival 
equipment will equal the demand of new survival craft equipment.
---------------------------------------------------------------------------

    \18\ There is currently one Coast Guard-approved fishing kit on 
CGMIX. The only non-durable aspect of the fishing kit is the bait, 
which is made of a synthetic resin known as plastisol. If stored 
properly, plastisol has an indefinite shelf life.
---------------------------------------------------------------------------

    The Coast Guard does not have substantive data on how long these 
durable goods last, and we estimate that these goods will last as long 
as the survival craft themselves.
    We discuss the renewal rate of non-durable goods, first-aid kits, 
and water later in this analysis.\19\ Table 12 lists the estimated 
number of pieces of survival craft equipment manufactured on an annual 
basis.
---------------------------------------------------------------------------

    \19\ Refer to the sections titled First-Aid Kits, First-Aid Kits 
for Liferafts and IBA, and Emergency Water further in the regulatory 
analysis.

[[Page 68283]]



 Table 12--Estimated Number of Pieces of Equipment Manufactured Annually
------------------------------------------------------------------------
                                                          Annual  number
                Equipment                    Approval      of  pieces of
                                              series         equipment
------------------------------------------------------------------------
Compass.................................         160.014              87
First-aid kit for Lifeboats.............         160.041             188
First-aid kit for Liferafts.............         160.054             285
Fishing kit.............................         160.061              38
Hatchet.................................         160.013              92
Jackknife...............................         160.043              46
Mirror, Signaling.......................         160.020             338
                                         -------------------------------
    Total...............................  ..............           1,074
------------------------------------------------------------------------

Equipment Approval and Markings
    In the current regulations, manufacturers seeking Coast Guard 
approval must submit a COA application with information such as 
technical plans, drawings, specifications, instructional materials, and 
test reports. In addition to the initial application, manufacturers of 
Coast Guard-approved equipment must also submit application renewals 
every 5 years to maintain their approval status. Table 3 presents the 
estimated number of new COA applications for each equipment type, as 
the annual average number of new products each year.
    Table 13 presents the estimated number of application renewals for 
each equipment type. Since the Coast Guard estimates that 1 of every 5 
applications will be renewed on an annual basis, the number of renewal 
applications is equal to 20 percent of the total number of products. 
Once a product has been approved, the manufacturer must stamp each 
individual piece of survival craft equipment with the Coast Guard 
approval number and other information.

                                     Table 13--Total Number of New Renewals
----------------------------------------------------------------------------------------------------------------
                                                                                    Annual
                                                   Approval          Total      percentage  of    Total renewal
                   Equipment                        series         products        COAs for       applications
                                                                                   renewals         annually
                                                                           (a)             (b)   (c) = (a) x (b)
----------------------------------------------------------------------------------------------------------------
Bilge pump....................................         160.044               3              20               0.6
Compass.......................................         160.014               3              20               0.6
First-aid kit for Lifeboats *.................         160.041               5              20                 1
First-aid kit for Liferafts...................         160.054               5              20                 1
Fishing kit...................................         160.061               1              20               0.2
Hatchet.......................................         160.013               1              20               0.2
Jackknife.....................................         160.043               1              20               0.2
Mirror, Signaling.............................         160.020               2              20               0.4
Sea anchor....................................         160.019               1              20               0.2
Water **......................................         160.026               6              20               1.2
                                               -----------------------------------------------------------------
    Total.....................................  ..............              28              20                 6
----------------------------------------------------------------------------------------------------------------
Note: Values may not sum due to rounding.
* This includes the first-aid kits described in the subchapters K and T section of this preamble, which are
  covered under the same approval subpart in the CFR.
** For emergency drinking water, this only includes implementation in the first 5 years of the analysis period.
We present the number of affected products in Years 6 through 10 of the analysis period later in this RA.

    We estimate that it will take the technical staff 2 hours to 
prepare a new application, and the clerical staff will spend 0.17 hours 
(10 minutes) \20\ per application on recordkeeping, for a total cost of 
$139 per new application [(2 technical hours x $67) + (0.17 clerical 
hours x $30) = $139]. For renewal applications, we estimate a burden of 
0.5 technical hours and 0.17 clerical hours, for a total cost of $39 
[(0.5 technical hours x $67) + (0.17 clerical hours x $30) = $39]. 
Under this rule, the Coast Guard no longer requires approval 
applications for any new survival craft equipment. As shown in table 
14, we estimate this will result in a cost saving to industry of 
approximately $117 per year for new applications, and approximately 
$219 per year for renewal applications. This results in a total annual 
cost savings of about $336.
---------------------------------------------------------------------------

    \20\ Based on information from the subchapter Q ICR.

[[Page 68284]]



              Table 14--Annual Cost Savings of Industry for No Longer Having to Submit New and Renewal Certificate of Approval Applications
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            New applications                Renewal applications
                                                       Approval    --------------------------------------------------------------------    Total cost
                     Equipment                          series      Total  number of    Total cost    Total  number of    Total cost         savings
                                                                      applications *      savings      applications **      savings
                                                                                 (a)  (b) = (a) x [-               (c)  (d) = (c) x [-   (e) = (b) + (d)
                                                                                               $139]                              $39]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bilge pump........................................         160.044              0.09            -$13              0.60            -$23              -$36
Compass...........................................         160.014              0.09             -13              0.60             -23               -36
First-aid kit for Lifeboats.......................         160.041              0.15             -21              1.00             -39               -60
First-aid kit for Liferafts.......................         160.054              0.15             -21                 1             -39               -60
Fishing kit.......................................         160.061              0.03              -4              0.20              -8               -12
Hatchet...........................................         160.013              0.03              -4              0.20              -8               -12
Jackknife.........................................         160.043              0.03              -4              0.20              -8               -12
Mirror, Signaling.................................         160.020              0.06              -8               0.4             -16               -24
Sea anchor........................................         160.019              0.03              -4              0.20              -8               -12
Water.............................................         160.026              0.18             -25              1.20             -47               -72
                                                   -----------------------------------------------------------------------------------------------------
    Total.........................................  ..............  ................            -117  ................            -219              -336
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Values may not sum due to rounding.
* Refer to column (c) in table 3.
** Refer to column (c) in table 13.

    The Coast Guard is removing requirements that equipment must be 
marked with a Coast Guard approval number. With the exception of 
compasses and hatchets, equipment needs to be marked only to indicate 
that it meets standards set in ISO 18813. Compasses will no longer need 
to be marked with their Coast Guard approval number, but will still 
need to be marked to indicate they meet ISO 25862, as is currently 
required by the Coast Guard approval guidelines for magnetic compasses 
in lifeboats and rescue boats. Hatchets will not need to be marked at 
all, as they do not have to meet any consensus standard and because 
this rule removes the marking required by Sec.  160.013-5.
    The Coast Guard assumes the burden to mark the equipment is the 
same whether it is marked with a Coast Guard approval number or whether 
it is marked indicating that it meets the ISO standard; therefore, this 
change will only result in a cost savings to the manufacturers of 
hatchets. The Coast Guard estimates that it takes industry 0.06 hours 
of production labor time \21\ to mark each individual piece of 
equipment at a cost of $1.56 (0.06 hours x $26 = $1.56) per piece of 
equipment. We estimate that 92 hatchets will no longer need to be 
marked each year (see table 12), for a total cost savings of 
approximately $144 ($1.56 x 92).\22\
---------------------------------------------------------------------------

    \21\ This is based on information from the subchapter Q ICR.
    \22\ This value is incorporated in column (a) of table 19.
---------------------------------------------------------------------------

Instructions
    The Coast Guard currently requires that equipment manufacturers 
provide instruction material with certain types of equipment to ensure 
that crew members have access to information on the proper use of the 
equipment. We currently require instructions for five of the nine types 
of equipment subject to this rulemaking: compasses, first-aid kits, 
mirrors, fishing kits, and jackknives. ISO 18813 requires instructions 
for three types of equipment: first-aid kits, mirrors, and fishing 
kits. ISO 18813 does not state that instructions need to be provided 
for compasses and jackknives; therefore, the manufacturers of compasses 
and jackknives will no longer have to develop and maintain instructions 
for their products under this rule.
    Based on information in the current subchapter Q ICR (OMB Control 
Number 1625-0035), we estimate that it takes about 8 hours of time to 
prepare a set of instructional materials for new equipment, for a cost 
of about $536 (8 hours x $67/hour).
    Table 15 presents the total annual industry cost savings, $64, for 
no longer having to develop new instructions for some types of new 
survival craft equipment. The total cost in columns (b) and (d), $536, 
is the loaded wage of a safety engineer and inspector, $67, multiplied 
by the estimated burden of work, 8 hours, for preparing a set of new 
instructions. This table presents the baseline scenario burden, the 
proposed post-regulatory scenario burden, and the difference between 
the two as cost savings.

                            Table 15--Annual Cost Savings of Modifying New Instruction Requirements for Applicable Equipment
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            Baseline scenario             Post-regulatory scenario
                                                       Approval    --------------------------------------------------------------------    Total cost
                     Equipment                          series         Total new                         Total new                           savings
                                                                     instructions      Total cost      instructions      Total cost
                                                                               (a)  (b) = (a) x $536             (c)  (d) = (c) x $536     (e) = (d)-(b)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Compass...........................................         160.014            0.09               $48               0                $0              -$48
First-aid kit for Lifeboats.......................         160.041            0.15                80            0.15                80                 0
First-aid kit for Liferafts.......................         160.054            0.15                80            0.15                80                 0
Fishing kit.......................................         160.061            0.03                16            0.03                16                 0
Jackknife.........................................         160.043            0.03                16               0                 0               -16
Mirror, Signaling.................................         160.020            0.06                32            0.06                32                 0
                                                   -----------------------------------------------------------------------------------------------------
    Total.........................................  ..............            0.51               272            0.39               208               -64
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.


[[Page 68285]]

Laboratory Testing and Recordkeeping
    As current regulations stand, the Coast Guard requires product 
testing and recordkeeping for some lifesaving equipment to ensure the 
equipment meets minimum performance requirements. Table 16 presents a 
comparison of the current Coast Guard testing requirements and the 
testing requirements stated in ISO 18813 and ISO 25862 (for compasses). 
This table also contains a qualitative description of the change in 
costs associated with modifying the current testing requirements. We 
were unable to obtain any cost data from the Coast Guard-approved labs 
that conduct the testing of this equipment, and we received no comments 
to the NPRM on this.\23\
---------------------------------------------------------------------------

    \23\ We asked four Coast Guard-approved laboratories for cost 
estimates for the testing requirements, but the labs were unable to 
provide any cost information.

                             Table 16--Previous and New Product Testing Requirements
----------------------------------------------------------------------------------------------------------------
                                        Previous testing           New testing
              Product                     requirements            requirements               Cost impact
----------------------------------------------------------------------------------------------------------------
Compasses..........................   All testing     All testing    No cost change, as the
                                      requirements from       requirements for        requirements of ISO 613
                                      section 4 of ISO 613    class B Compasses as    and ISO 25862 are not
                                      \a\.                    stated in ISO 25862.    substantively different.
                                      Dry Heat \a\.   Dry Heat.....
                                      Low             Damp Heat....
                                      Temperature \a\.        Low
                                      Vibration \a\   Temperature.
                                      Solar           Vibration....
                                      Radiation \a\.          Solar
                                      Corrosion \a\   Radiation.
                                                              Corrosion....
Bilge Pump.........................   Capacity        Capacity       None. Testing requirements
                                      Testing \b\.            Testing.                are the same.
                                      Head Pressure   Head Pressure
                                      Testing \b\.            Testing.
                                      Operating       Operating
                                      Lever Testing \b\.      Lever Testing.
Jackknife..........................   Hardness Test   Cutting Tests  Unquantified cost savings.
                                      \c\.                                            The Coast Guard is unable
                                      Bending and                             to assess the change in
                                      Drop Tests \c\.                                 burden; there is no
                                      Cutting Tests                           substantive data.
                                      \c\.
First-Aid for Lifeboats............   Accelerated     None.........  Unquantified cost savings.
                                      weathering \d\.                                 There is no change in
                                      Salt spray                              testing requirements;
                                      \d\.                                            therefore, there is no
                                      Temperature                             change in burden.
                                      change \d\.
                                      Container
                                      watertightness \d\.
                                      Carton
                                      watertightness \d\.
First-Aid for Liferafts............   Accelerated     None.........  Unquantified cost savings.
                                      weathering \e\.                                 There is no change in
                                      Salt Spray                              testing requirements;
                                      \e\.                                            therefore, there is no
                                                                                      change in burden.
Mirrors............................   Reflection      Reflection     Unknown change in cost. The
                                      Test \f\.               Test.                   Coast Guard is unable to
                                      Flatness        Flatness Test   assess the change in
                                      Tests \f\.              Dropping Test   burden as there is no
                                      Dropping Test   Oil-            substantive data.
                                      \f\.                    Resistance Test.
                                      Salt Spray      Lanyard
                                      \f\.                    Strength Test.
                                     
                                      Watertightness.
Emergency Water....................   Chemical and    Water quality  None. Testing requirements
                                      biological analysis.    must be verified by     are the same, as under the
                                      Temperature     the local               ISO standard the water
                                      Storage.                municipality or         must satisfy international
                                      Leakage......   independent lab.        chemical and
                                      Water           Low and High    microbiological
                                      Immersion Testing.      Temperature Storage.    requirements. Concerning
                                      Durability...   Leakage......   the water quality testing,
                                      Corrosion....   Water           the Coast Guard was unable
                                      Drop.........   Immersion Testing.      to obtain any cost data
                                                              Durability...   from the laboratories.
                                                              Corrosion....
                                                              Drop.........
----------------------------------------------------------------------------------------------------------------
Sources:
\a\ ``United States Coast Guard Approval Guideline for Magnetic Compasses in Lifeboats/Rescue Boats,'' USCG
  Approval Series 160.014, December 2005.
\b\ Sec.   160.044-4
\c\ Sec.   160.043-5
\d\ Sec.   160.041-5
\e\ Sec.   160.054-5
\f\ Documentation provided by subject matter experts in CG-ENG-4.

    Based on the information from the current subchapter Q ICR, we 
estimate that recordkeeping takes 2 hours of clerical time per year and 
costs $60 (2 hours x $30 clerical staff loaded hourly wage rate). The 
Coast Guard is removing the requirements for testing records for seven 
types of equipment listed in this final rule, as these manufacturers no 
longer need these records to document that their products meet the 
requirements of the ISO 18813. Table 17 presents the total cost savings 
of about $1,500 to industry from removing requirements to keep records 
of laboratory testing. The $60 figure used in calculating total cost in 
columns (b) and (d) represents the loaded hourly

[[Page 68286]]

wage of a record clerk ($30) multiplied by the estimated burden of work 
for fulfilling recordkeeping requirements (2 hours). This table 
presents the baseline scenario burden and the post-regulatory scenario 
burden and then presents the difference of the two burdens as cost 
savings.

                                  Table 17--Annual Cost Savings to Manufacturers for Testing Recordkeeping Requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            Baseline scenario             Post-regulatory scenario
                                                       Approval    --------------------------------------------------------------------    Total cost
                     Equipment                          subpart          Total                             Total                             savings
                                                                       products        Total cost        products        Total cost
                                                                               (a)   (b) = (a) x $60             (c)   (d) = (c) x $60   (e) = (d) - (b)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bilge pump........................................         160.044               3              $180               0                $0             -$180
Compass...........................................         160.014               3               180               0                 0              -180
First-aid kit for Lifeboats.......................         160.041               5               300               0                 0              -300
First-aid kit for Liferafts.......................         160.054               5               300               0                 0              -300
Jackknife.........................................         160.043               1                60               0                 0               -60
Mirror, Signaling.................................         160.020               2               120               0                 0              -120
Water.............................................         160.026               6               360               0                 0              -360
                                                   -----------------------------------------------------------------------------------------------------
    Total.........................................  ..............              25             1,500               0                 0            -1,500
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Laboratory Inspections
    The Coast Guard currently requires inspectors to examine the 
manufacturing process in order to ensure that quality control is 
maintained. This rule removes these requirements; however, the Coast 
Guard is unable to determine if this removal will generate any cost 
savings to industry. Hence, the Coast Guard is not quantifying it as a 
cost savings. Manufacturers are likely to still have their production 
line inspected to ensure quality as part of best industry practices. 
Moreover, manufacturers may continue third-party testing to maintain 
certifications, such as the ISO 9001 standard, or to meet other 
regulatory obligations. At the time of this final rule, the Coast Guard 
does not have enough information to quantify any potential changes in 
cost resulting from the changes in inspection requirements.
    Additionally, the Coast Guard requires inspecting entities to issue 
annual reports to enable a comparison between the production line and 
the prototype tested by the Coast Guard.\24\ We were able to estimate a 
cost savings that resulted from the removal of this reporting 
requirement using information from the subchapter Q ICR, which 
estimated that this recordkeeping takes 24 hours of clerical time per 
year on average and costs $720 (24 hours x $30 clerical wage rate). The 
Coast Guard is removing this reporting requirement for all types of 
survival craft equipment. As shown in table 18, we estimate a total 
annual cost savings of approximately $17,280. This table presents the 
baseline scenario burden, the post-regulatory scenario burden, and the 
difference between the two as cost savings.
---------------------------------------------------------------------------

    \24\ While the Coast Guard currently requires testing for 
jackknives, it does not require laboratory inspections. Therefore, 
there are no cost savings to jackknife manufacturers from this 
change.

                                             Table 18--Annual Cost Savings for Laboratory Inspection Records
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            Baseline scenario             Post-regulatory scenario
                                                       Approval    --------------------------------------------------------------------  Total change in
                     Equipment                          series           Total                             Total                              cost
                                                                       products        Total cost        products        Total cost
                                                                               (a)  (b) = (a) x $720             (c)  (d) = (c) x $720   (e) = (d) - (b)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bilge pump........................................         160.044               3            $2,160               0                $0           -$2,160
Compass...........................................         160.014               3             2,160               0                 0            -2,160
First-aid kit for Lifeboats.......................         160.041               5             3,600               0                 0            -3,600
First-aid kit for Liferafts.......................         160.054               5             3,600               0                 0            -3,600
Mirror, Signaling.................................         160.020               2             1,440               0                 0            -1,440
Water.............................................         160.026               6             4,320               0                 0            -4,320
                                                   -----------------------------------------------------------------------------------------------------
    Total.........................................  ..............              24            17,280               0                 0           -17,280
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Total Cost Savings to Manufacturers
    Table 19 presents the annual total cost savings to equipment 
manufacturers. We estimate that manufacturers of Coast Guard-approved 
bilge pumps, lifeboats, compasses, first-aid kits, fishing kits, 
hatchets, jackknives, signaling mirrors, sea anchors, and emergency 
water will save approximately $19,324 per year.

                                             Table 19--Total Annual Cost Savings to Equipment Manufacturers
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Application
                       Equipment                           Approval       and marking     Instruction       Product       Laboratory       Total cost
                                                            series       requirements    requirements       testing       inspections        savings
                                                                                   (a)             (b)             (c)             (d)   (e) = (a) + (b)
                                                                                                                                             + (c) + (d)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bilge pump............................................         160.044            -$36              $0           -$180         -$2,160           -$2,376
Compass...............................................         160.014             -36             -48            -180          -2,160            -2,424

[[Page 68287]]

 
First-aid kit for Lifeboats...........................         160.041             -60              -0            -300          -3,600            -3,960
First-aid kit for Liferafts...........................         160.054             -60              -0            -300          -3,600            -3,960
Fishing kit...........................................         160.061             -12              -0               0               0               -12
Hatchet...............................................         160.013            -156               0               0               0              -156
Jackknife.............................................         160.043             -12             -16             -60               0               -88
Mirror, Signaling.....................................         160.020             -24              -0            -120          -1,440            -1,584
Sea anchor............................................         160.019             -12               0               0               0               -12
Water.................................................         160.026             -72               0            -360          -4,320            -4,752
                                                       -------------------------------------------------------------------------------------------------
    Total.............................................  ..............            -480             -64          -1,500         -17,280           -19,324
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Cost Savings to Vessel Owners or Operators
    After gathering price data from a variety of sources, we estimate 
that removing approval requirements will allow owners and operators of 
vessels to purchase less expensive equipment.\25\ While there are 
several companies selling Coast Guard-approved equipment, online 
information generally does not specify whether the equipment meets ISO 
18813 or similar standards. As a result, we had difficulty finding 
price data for survival craft equipment products clearly stating that 
they met ISO 18813 standards. However, we were able to identify prices 
for two products--emergency provisions and emergency water--that the 
manufacturer or advertiser explicitly stated met the requirements of 
the ISO 18813 standard.
---------------------------------------------------------------------------

    \25\ We looked at online retailers of survival craft equipment 
to assess price data. A search of online retailers determined that 
equipment that was not type-approved was less expensive than similar 
equipment that was type-approved.
---------------------------------------------------------------------------

    We then applied percentage price difference between emergency water 
products and emergency provisions that had both Coast Guard approval 
and met the requirements of ISO 18813, and those emergency provisions 
and water products that met only the requirements of ISO 18813.\26\ We 
estimate that products without Coast Guard approval affected by this 
rule were approximately 28 percent less expensive than products with 
Coast Guard approval.\27\
---------------------------------------------------------------------------

    \26\ Although emergency provisions are not subject to changes in 
this final rule, we still examined them for the purposes of price 
comparison, as doing so provided a depth of data allowing us to 
determine a more robust ratio.
    \27\ We calculated this figure by finding the price differential 
for those products that were Coast Guard type-approved and those 
products that were not Coast Guard-approved but met ISO standards. 
We were not able to derive this figure for all of the products due 
to lack of industry data. However, given the similarity of the 
equipment type, we assume the price differences would be similar for 
all products.
---------------------------------------------------------------------------

    We applied this 28-percent price decrease to all the products 
affected by this rule, with the exception of first-aid kits, because 
the kit content requirements differ between the ISO standard and 
current Coast Guard standards, and we estimate the change in price for 
first-aid kits by the difference in replacement costs for first-aid 
kits. These differences are explained in further detail in the section, 
First-Aid Kits, in this RA. For this analysis, we quantified the cost 
savings to new vessels from being able to purchase less expensive 
equipment, and the cost savings to existing vessels of replacing 
expired items with less costly items. For durable items, without data 
to estimate how frequently these items are replaced, we are not able to 
estimate the cost savings to the owners and operators of existing 
vessels for purchasing replacement equipment that we estimate will be 
28 percent cheaper. However, since emergency water and first-aid kits 
expire, we estimate the cost savings for purchasing replacement 
equipment for the owners and operators of both new and existing vessels 
based on how frequently this non-durable equipment must be replaced. 
This information is presented later in this RA.
Durable Equipment: Bilge Pumps, Compasses, Fishing Kits, Hatchets, 
Jackknives, Mirrors, and Sea Anchors
    We estimate that only new vessels will purchase bilge pumps, 
compasses, fishing kits, hatchets, jackknives, mirrors, and sea anchors 
for their survival craft. Based on population estimates (presented in 
table 5), 25 new IBAs, 222 new liferafts, 33 new lifeboats, and 31 new 
rescue boats will be subject to this rule each year. Table 6 lists the 
survival equipment that lifeboats, liferafts, rescues boats, and IBAs 
are required to carry. We multiply the populations in table 5 by the 
carriage requirements in table 6 to yield the total number of items 
purchased for new survival craft in table 20. The Coast Guard requires 
new lifeboats to be equipped with bilge pumps, and there were 33 new 
lifeboats recorded in table 5, meaning there will be 33 purchases of 
new bilge pumps per year.\28\ Only the new lifeboats with equipment 
packs for international voyages will require fishing kits (see table 
6), and all new lifeboats and rescue boats will be equipped with 
compasses, for a total of 64 purchases of compasses each year. All 280 
new IBAs, liferafts, and lifeboats are required to be equipped with 
mirrors. Finally, 218 liferafts with a SOLAS A or SOLAS B pack will be 
equipped with 2 sea anchors each. This rule will require that 93 IBAs, 
lifeboats, rescue boats, and liferafts with coastal service packs each 
have 1 sea anchor.
---------------------------------------------------------------------------

    \28\ The Coast Guard requires all non-self-bailing lifeboats and 
rescue boats to have bilge pumps. Based on discussions with subject 
matter experts in CG-ENG-4, the Coast Guard estimates that all new 
lifeboats will be non-self-bailing and will therefore require bilge 
pumps, and all new rescue boats that are not also lifeboats will be 
self-bailing and therefore will not require bilge pumps.
---------------------------------------------------------------------------

    Table 20 presents the annual cost savings from new vessels removing 
Coast Guard approval for bilge pumps, compasses, fishing kits, 
hatchets, jackknives, mirrors, and sea anchors. In total, we estimate 
an annual cost savings of approximately $78,324 for U.S.-flagged 
vessels by removing the type approvals for these 7 types of survival 
craft equipment.

[[Page 68288]]



Table 20--Annual Cost Savings to New Vessels From Removing Coast Guard Approval for Bilge Pumps, Compasses, Fishing Kits, Hatchets, Jackknives, Mirrors,
                                                                     and Sea Anchors
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      Average  price      Estimated
                                                         of  coast     equipment price                                        Average
                      Equipment                           guard-        without coast      Difference       Number  of       number of      Total cost
                                                         approved      guard approval                     survival craft     items per        savings
                                                         equipment      requirements                                      survival craft
                                                                 (a)  (b) = (a) x 0.72     (c) = (b)-(a)             (d)             (e)     (f) = (c) x
                                                                                                                                               (d) x (e)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bilge pump..........................................            $276              $199              -$77              33               1         -$2,541
Compass.............................................           1,250               900              -350              64               1         -22,400
Fishing kit.........................................              41                30               -11              31               1            -341
Hatchet.............................................              28                20                -8              33               2            -528
Jackknife...........................................              34                24               -10              33               1            -330
Mirror, Signaling...................................              19                14                -5             280               1          -1,400
Sea anchor (Liferafts with SOLAS A and SOLAS B                   343               247               -96             218               2         -41,856
 packs).............................................
Sea anchor (Other Survival Craft)...................             343               247               -96              93               1          -8,928
                                                     ---------------------------------------------------------------------------------------------------
    Total...........................................  ..............  ................  ................  ..............  ..............         -78,324
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding. All product prices are rounded to the nearest whole dollar.

Jackknives as a Replacement for Can Openers
    As specified in Sec.  199.175(b)(5), the Coast Guard allows 
jackknives to meet the requirements of a can opener, thereby permitting 
jackknives to fulfill two requirements. Table 1 in Sec.  199.175 states 
that only lifeboats and rigid liferafts with SOLAS A packs require can 
openers, and only lifeboats may carry jackknives. This means that rigid 
liferafts with SOLAS A packs are currently carrying both knives and can 
openers. This rule will allow these vessels to replace their knives 
with jackknives, resulting in a cost savings to vessel owners from 
being able to purchase only a jackknife instead of both a knife and a 
can opener. We estimate that there are a total of 136 new liferafts 
each year that carry SOLAS A packs and, further, assume that these 
vessel owners and operators will choose to replace a knife with a 
jackknife, thus forgoing the need to purchase a can opener.\29\ We 
estimate the price of a can opener meeting the requirements of ISO 
18813 to be $6.\30\ Therefore, we estimate that vessel owners and 
operators will save $816 (136 SOLAS A liferafts x $6 per can opener) 
for no longer needing can openers, because of meeting the jackknife 
requirements.
---------------------------------------------------------------------------

    \29\ We estimate the cost savings for only one can opener 
because the use of a jackknife will only fulfill the replacement 
requirement for one can opener.
    \30\ We calculated this by taking the average of 10 can opener 
products on the market that meet ISO 18813 requirements. The Coast 
Guard will now require that can openers meet the standards of ISO 
18813.
---------------------------------------------------------------------------

Emergency Water
    The Coast Guard requires survival craft with SOLAS A packs be 
stocked with 3 liters of water per person, and that lifeboats with 
SOLAS B packs be stocked with 1.5 liters of water per person. We 
estimate the average cost of Coast Guard-approved water to be $4 per 
liter,\31\ while the cost of 1 liter of emergency water that meets the 
ISO 18813 standard to be $3.\32\ The price difference between the Coast 
Guard-approved water and water approved under ISO 18813 is $1 per 
liter.\33\ This is the estimated additional cost of Coast Guard 
approval, which is counted as cost savings. Emergency water expires and 
will need to be replaced every 5 years; therefore, the Coast Guard 
estimates that 20 percent of existing survival craft and 100 percent of 
new survival craft will need to purchase emergency water annually.
---------------------------------------------------------------------------

    \31\ We calculated this by taking the average of 14 Coast Guard-
approved emergency drinking water products on the market.
    \32\ We calculated this by taking the average of 14 available 
emergency drinking water products on the market that were compliant 
with ISO 18813 only.
    \33\ To calculate this, we took the average of emergency 
drinking water prices that were Coast Guard-approved and subtracted 
them from emergency drinking water prices that need only meet the 
ISO standard.
---------------------------------------------------------------------------

    We estimate that industry will save a total of $183,255 on an 
annual basis (3,215 survival craft x 19 people per survival craft x 3 
liters of water x $1 cost savings) for survival craft with SOLAS A 
packs during Years 1 through 5 of implementation.\34\ To calculate this 
cost savings, we took the 12,690 existing liferafts with SOLAS A packs 
and 2,552 lifeboats with international voyage packs (see table 9) for a 
total of 15,242 existing survival craft that are required to stock 
emergency water. We then estimated that 20 percent (100 percent of 
these survival craft / 5 years) or 3,048 survival craft [(12,690 
liferafts x 20 percent) + (2,552 lifeboats x 20 percent)] will replace 
their emergency water annually. Additionally, all 31 new lifeboats with 
international packs and 136 new liferafts with SOLAS A packs (see table 
10) are required to buy emergency water. We summed these totals to get 
3,215 survival craft that will need to purchase emergency water on an 
annual basis (3,048 existing survival craft + 31 new lifeboats + 136 
new liferafts). Table 21 presents these cost savings.
---------------------------------------------------------------------------

    \34\ We calculated this by taking the average of the survival 
craft capacity for all survival craft. We retrieved this data from 
the MISLE database in November 2020.
---------------------------------------------------------------------------

    In Years 6 through 10, there will be more cost savings, because 
vessels will have entirely replaced their survival craft equipment by 
Year 6, as described earlier in this rule. Therefore, we estimate an 
annual cost savings of about $192,774 [3,382 survival craft (3,215 + 
167 new craft) x 19 people per survival craft x 3 liters of water x -$1 
cost savings] for survival craft with SOLAS A packs. Table 22 presents 
these cost savings.

[[Page 68289]]



           Table 21--Total Cost Savings for Coast Guard Approval for Reduced Prices in Emergency Water for SOLAS A Packs in Years 1 Through 5
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Total        New                 Person per                 Total
                                                           liferafts   lifeboats     Total       life      Liters of     water      Cost of   Total cost
                    Years 1 through 5                         and         and      survival     saving       water     needed in     water      savings
                                                           lifeboats   liferafts     craft       craft     required     liters
                                                                 (a)         (b)   (c) = (a)         (d)         (e)   (f) = (c)         (g)   (h) = (g)
                                                                                       + (b)                             x (d) x                   x (f)
                                                                                                                             (e)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Baseline................................................       3,048         167       3,215          19           3     183,255          $4    $733,020
Post-Regulatory.........................................       3,048         167       3,215          19           3     183,255           3     549,765
Change..................................................  ..........  ..........  ..........           0           0           0          -1    -183,255
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.


           Table 22--Total Cost Savings for Coast Guard Approval for Reduced Prices in Emergency Water for SOLAS A Packs in Years 6 Through 10
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Total        New                 Person per                 Total
                                                           liferafts   lifeboats     Total       life      Liters of     water      Cost of   Total cost
                   Years 6 through 10                         and         and      survival     saving       water     needed in     water      savings
                                                           lifeboats   liferafts     craft       craft     required     liters
                                                                 (a)         (b)   (c) = (a)         (d)         (e)   (f) = (c)         (g)   (h) = (g)
                                                                                       + (b)                             x (d) x                   x (f)
                                                                                                                             (e)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Baseline................................................       3,215         167       3,382          19           3     192,774          $4    $771,096
Post-Regulatory.........................................       3,215         167       3,382          19           3     192,774           3     578,322
Change..................................................  ..........  ..........  ..........           0           0           0          -1    -192,774
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

    We used the same methodology when calculating the number of SOLAS A 
packs in Years 1 through 10 of implementation to estimate the total 
costs savings for survival craft with SOLAS B packs. There are a total 
of 283 existing lifeboats with SOLAS B packs (see table 9). We estimate 
that 20 percent of these survival craft or 57 survival craft (283 
lifeboats x 20 percent) will replace their emergency water annually. 
Additionally, all 2 new lifeboats with SOLAS B packs are required to 
buy emergency water, for a total of 59 survival craft (57 lifeboats + 2 
new lifeboats) purchasing emergency water in Years 1 through 5. In 
Years 6 through 10, the number of existing lifeboats will increase by 2 
to account for the new vessels that will be built in Years 1 through 5 
(59) for a total of 61 survival craft (59 existing survival craft + 2 
new lifeboats).
    The cost savings for survival craft with SOLAS B packs purchasing 
emergency water will be approximately $1,682 (59 survival craft x 19 
people per survival craft x 1.5 liters of water x -$1 cost savings) in 
Years 1 through 5 and approximately $1,739 (61 survival craft x 19 
people per survival craft x 1.5 liters of water x -$1 cost savings) in 
Years 6 through 10. Table 23 presents these cost savings in Years 1 
through 5 of implementation, and table 24 presents these cost savings 
in Years 6 through 10 of implementation.

           Table 23--Total Cost Savings for Coast Guard Approval for Reduced Prices in Emergency Water for SOLAS B Packs in Years 1 Through 5
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                              Person per
                                                              New         New      Total new     life      Liters of     Total                Total cost
                     Water Years 1-5                       liferafts   lifeboats   survival     saving       water       water       Cost       savings
                                                                                     craft       craft     required
                                                                 (a)         (b)   (c) = (a)         (d)         (e)  (f) = [(c)         (g)   (h) = (f)
                                                                                       + (b)                             x (d) x                   x (g)
                                                                                                                            (e)]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Baseline................................................          57           2          59          19         1.5       1,682          $4      $6,728
Post-Regulatory.........................................          57           2          59          19         1.5       1,682           3       5,046
Change..................................................           0           0           0           0           0           0          -1      -1,682
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.


           Table 24--Total Cost Savings for Coast Guard Approval for Reduced Prices in Emergency Water for SOLAS B Packs in Years 6 Through 10
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                              Person per
                                                              New         New      Total new     life      Liters of     Total                Total cost
                    Water years 6-10                       liferafts   lifeboats   survival     saving       water       water       Cost       savings
                                                                                     craft       craft     required
                                                                 (a)         (b)   (c) = (a)         (d)         (e)  (f) = [(c)         (g)   (h) = (f)
                                                                                       + (b)                              x(d) x                   x (g)
                                                                                                                            (e)]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Baseline................................................          59           2          61          19         1.5       1,739          $4      $6,956
Post-Regulatory.........................................          59           2          61          19         1.5       1,739           3       5,217
Change..................................................           0           0           0           0           0           0          -1      -1,739
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

    Table 25 presents the total annualized cost savings to vessel 
owners and operators from removing Coast Guard approval requirements 
for emergency water. The Coast Guard estimates an annualized cost 
savings of about

[[Page 68290]]

$188,923 with a 7-percent discount rate ($189,372 with 3-percent 
discount rate).

Table 25--Total Cost Savings to Vessels From Removing Coast Guard Approval for Reduced Prices in Emergency Water
----------------------------------------------------------------------------------------------------------------
                                   Cost savings    Cost savings                       Annualized cost savings
                                    for vessels     for vessels     Total cost   -------------------------------
              Year                 with SOLAS A    with SOLAS B       savings
                                       packs           packs                            3%              7%
----------------------------------------------------------------------------------------------------------------
(a)                                          (b)             (c)     (d) = (b) +     (e) = (d) /     (f) = (d) /
                                                                             (c)      1.03 \(a)\      1.07 \(a)\
----------------------------------------------------------------------------------------------------------------
1...............................        $183,255          $1,682        $184,937        $179,550        $172,838
2...............................        -183,255          -1,682        -184,937        -174,321        -161,531
3...............................        -183,255          -1,682        -184,937        -169,244        -150,964
4...............................        -183,255          -1,682        -184,937        -164,314        -141,088
5...............................        -183,255          -1,682        -184,937        -159,528        -131,858
6...............................        -192,774          -1,739        -194,513        -162,902        -129,612
7...............................        -192,774          -1,739        -194,513        -158,157        -121,133
8...............................        -192,774          -1,739        -194,513        -153,550        -113,208
9...............................        -192,774          -1,739        -194,513        -149,078        -105,802
10..............................        -192,774          -1,739        -194,513        -144,736         -98,881
----------------------------------------------------------------------------------------------------------------
    Total.......................      -1,880,145         -17,105      -1,897,250       1,615,380      -1,326,915
----------------------------------------------------------------------------------------------------------------
        Annualized..............  ..............  ..............  ..............        -189,372        -188,923
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

First-Aid Kits
    The Coast Guard is modifying the requirements for first-aid kits so 
that all first-aid kits in survival craft must meet the standards 
outlined in ISO 18813. In addition to removing the testing requirements 
for the kits, this change modifies the required contents of first-aid 
kits by removing the requirements for some items, adding additional 
items, or changing the number of mandatory items. Since items within 
the kits expire and need to be replaced, the change impacts both new 
and existing vessels, including small passenger vessels described in 
the Subchapters K and T section in this preamble. Table 26 highlights 
these differences in the first-aid kit requirement. Due to the 
differences in the first-aid kits, we estimate the cost of purchasing 
each of the individual items in the kit.

                            Table 26--Crosswalk of First-Aid Kit Content Requirements
----------------------------------------------------------------------------------------------------------------
                                                                Number of items required
                                      --------------------------------------------------------------------------
                 Item                    Lifeboats and rescue       Liferaft and IBA
                                          boat  requirements    requirements under Sec.   ISO 18813 requirements
                                        under Sec.   160.041-4          160.054-4
----------------------------------------------------------------------------------------------------------------
Adhesive Plasters....................  32 1-inch waterproof     16 1-inch waterproof     20 bandages in assorted
                                        bandages.                bandages.                sizes.
Ammonia Inhalants....................  10.....................  10.....................  0.
Analgesic Medication.................  50 doses...............  20 doses...............  48 doses.
Antiseptic Preparations..............  10 iodine swabs........  10 iodine swabs........  10 applications.
Burn Preparations....................  0......................  0......................  12 applications.
Compression Bandage (for wounds).....  5 4-inch bandages 8 2-   1 4-inch bandage 4 2-    10 sterile bandages in
                                        inch bandages.           inch bandages.           assorted sizes.
Compression Bandage (for securing      2 2-inch-by-6-yard       2 2-inch-by-6-yard       4 meters (4.4 yards) of
 splints, dressings, etc.).             bandages.                bandages.                adhesive elastic
                                                                                          bandage.
Eye Dressing Packet..................  3......................  3......................  0.
Instructions.........................  1......................  1......................  1.
Sterile Gauze Compress...............  12 3-by-18-inch          4 3-by-18-inch           2.
                                        compresses.              compresses.
Tourniquet, with forceps, scissors     1, 1, 1, and 12,         1, 1, 1, and 12,         0.
 and pins.                              respectively.            respectively.
Triangle Bandage.....................  3 40-inch bandages.....  0......................  2.
Waterproof Container.................  1......................  1......................  1.
Wire Splint..........................  1......................  1......................  0.
----------------------------------------------------------------------------------------------------------------

First-Aid Kits for Lifeboats and Rescue Boats
    We estimate that new vessels with lifeboats or rescue boats will 
have a cost savings as a result of the changes to first-aid kits, 
because we estimate that first-aid kits that meet the standard are $41 
less expensive than Coast Guard-approved kits under approval series 
160.041. We estimate that a total of 64 new lifeboats and rescue boats 
will purchase a first-aid kit each year for a total costs savings of 
approximately $2,624 (64 survival craft x $41 cost savings).
    The Coast Guard is not requiring existing vessels to replace their 
current kits; however, existing vessels must replace medication and 
ointments within the kits by their expiration date.

[[Page 68291]]

Currently, vessels must replace their iodine swabs, pain relief 
medication, and eye ointment, which we estimate costs about $19 per 
kit.\35\ We calculated the cost per kit by taking the average price for 
10 different iodine swab products, 12 different pain relief medication, 
and 8 different eye ointments. Under this rule, these vessels will no 
longer have to replace eye ointment, and will need to replace fewer 
doses of pain relief medication. Additionally, vessel operators will be 
able to replace iodine swabs with less expensive antiseptic 
preparation. However, under this rule, vessels will incur an additional 
cost from replacing the burn cream in the kits, as required by ISO 
18813 shown in table 26. We estimate the cost of replacing these items 
to be $19, meaning the change is cost-neutral to existing vessels with 
lifeboat first-aid kits.\36\
---------------------------------------------------------------------------

    \35\ ISO 18813 uses the specific language of Analgesic and 
Ophthalmic when describing the medication in the first-aid kits. 
Refer to the appendix titled ``Appendix B: Product Prices'' in the 
docket folder for more information on product prices for these items 
that comprise the first-aid kit.
    \36\ The Coast Guard used the same price estimation for the 
average cost of these items as the cost it would take to replace 
them.
---------------------------------------------------------------------------

First-Aid Kits for Liferafts and IBAs
    We estimate that first-aid kits that meet the requirements of ISO 
18813 will be, on average, $1 less expensive than the Coast Guard-
approved kits for liferafts and IBAs.\37\ All 218 new liferafts and all 
25 new IBAs will need to be equipped with the kits each year for an 
annual cost savings of $243 (243 survival craft x -$1 cost saving).\38\ 
Liferaft first-aid kits are sealed in plastic bags, and most drugs 
expire within a 2- to 3-year timeframe. Vessel owners and operators 
have to replace the entire first-aid kit with a brand new kit after 
using even one item. Once the packaging for the kit is opened, the 
majority of items in it will have the same expiration date, not just 
the individual item.\39\ Therefore, the Coast Guard estimates that 
vessels will replace the items in their first-aid kits once they have 
expired, every 2.5 years (average of 2 and 3 years), and this process 
occurs during the annual servicing at an approved servicing facility.
---------------------------------------------------------------------------

    \37\ The Coast Guard took the average price of six Coast Guard-
approved first-aid kits and subtracted it from an average of six 
first-aid kits that met ISO standards.
    \38\ There are 222 liferafts affected by this rule, but those 
requiring SOLAS A and B packs (218 liferafts) will be required to 
have first-aid kits.
    \39\ We contacted a liferaft servicing firm to determine how the 
expired items in liferaft and lifeboat first-aid kits are replaced.
---------------------------------------------------------------------------

    We calculate that 40 percent (1 replacement every 2.5 years) of 
vessels will replace these items annually. Forty percent of all 
existing 2,612 IBAs and 22,377 liferafts [table 9 (sum of the totals 
for SOLAS A and SOLAS B for inflatable liferafts columns)] is 9,996 
survival craft [(2,612 IBAs x 40 percent) + (22,377 liferafts x 40 
percent)]. Beginning in Year 3, the new survival craft from Year 1 will 
need to replace their kits for a total of 10,239 survival craft (9,996 
existing survival craft + 243 survival craft built in Year 1). In Year 
4, the new survival craft from Year 2 will need to replace their kits, 
but those from Year 1 will not need to do this, since they will have 
replaced their kits in the prior year. Therefore, the total needing to 
replace first-aid kits will still be 10,239 survival craft (9,996 
existing survival craft + 243 survival craft built in Year 2). In Year 
5, the survival craft built in Year 1 and Year 3 will replace their 
kits for a total of 10,482 survival craft (9,996 existing survival 
craft + 243 survival craft built in Year 1 + 243 survival craft built 
in Year 3). This pattern continues over the 10-year analysis period. In 
conclusion, we estimate the total annualized cost savings from removing 
Coast Guard approval for liferaft first-aid kits will be $10,660 with a 
7-percent discount rate as shown in table 27.

            Table 27--Total Cost Savings to Vessels From Removing Coast Guard Approval Requirements for First-Aid Kits in Liferafts and IBAs
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Cost savings for replacement kits                               Annualized cost savings
                                                     -------------------------------------------------                 ---------------------------------
                Year                   Cost savings   Total survival   Cost savings      Total cost       Total cost
                                      to new vessels       craft            for         savings for        savings             3%               7%
                                                      replacing kits    replacement     replacements
(a)                                              (b)             (c)             (d)  (e) = (c) x (d)  (f) = (b) + (e)      (g) = (f) /      (h) = (f) /
                                                                                                                             1.03 \(a)\       1.07 \(a)\
--------------------------------------------------------------------------------------------------------------------------------------------------------
1...................................           -$243           9,996             -$1          -$9,996         -$10,239          -$9,941          -$9,569
2...................................            -243           9,996              -1           -9,996          -10,239           -9,651           -8,943
3...................................            -243          10,239              -1          -10,239          -10,482           -9,593           -8,556
4...................................            -243          10,239              -1          -10,239          -10,482           -9,313           -7,997
5...................................            -243          10,482              -1          -10,482          -10,725           -9,251           -7,647
6...................................            -243          10,482              -1          -10,482          -10,725           -8,982           -7,147
7...................................            -243          10,725              -1          -10,725          -10,968           -8,918           -6,830
8...................................            -243          10,725              -1          -10,725          -10,968           -8,658           -6,383
9...................................            -243          11,968              -1          -11,968          -11,211           -8,592           -6,098
10..................................            -243          11,968              -1          -11,968          -11,211           -8,342           -5,699
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Total...........................  ..............  ..............  ..............  ...............  ...............          -91,242          -74,870
--------------------------------------------------------------------------------------------------------------------------------------------------------
        Annualized..................  ..............  ..............  ..............  ...............  ...............          -10,696          -10,660
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

First-Aid Kits for Small Passenger Vessels (Subchapter K and Subchapter 
T)
    This final rule will also remove Coast Guard approval requirements 
for first-aid kits aboard small passenger vessels, which the Coast 
Guard regulates under subchapters K and T. Small passenger vessels are 
currently required to have first-aid kits approved under approval 
series 160.041; therefore, we used the same cost savings estimates for 
replacing first-aid kits in the section titled First-Aid Kits for 
Lifeboats and Rescue Boats. This comes to $41 per first-aid kit. The 
Coast Guard applied these estimates to small passenger vessels, which 
will no longer need Coast Guard approval for the first-aid kits aboard 
the vessels themselves. We estimate that there will be 40 new small 
passenger vessels every year (see table 5). All of the 40 new passenger 
vessels will need to be equipped with first-aid

[[Page 68292]]

kits each year, for an annual cost savings of $1,640.
Total Cost Savings to Vessel Owners and Operators
    Table 28 presents the annual undiscounted total cost savings to 
vessel owners and operators by equipment type, and table 29 presents 
the total annualized cost savings. We estimate the total undiscounted 
costs savings to vessel owners and operators at $2.85 million over a 
10-year period of analysis, with an annualized total cost savings of 
about $284,481 discounted at 7 percent ($284,966 with a 3-percent 
discount rate).
BILLING CODE 9110-04-P

[[Page 68293]]

[GRAPHIC] [TIFF OMITTED] TR14NO22.002

BILLING CODE 9110-04-C

[[Page 68294]]



                        Table 29--Annualized Cost Savings to Vessel Owners and Operators
----------------------------------------------------------------------------------------------------------------
                                                                                   Annualized cost savings
                          Year                               Total cost    -------------------------------------
                                                              savings               3%                 7%
(a)                                                                    (b)   (c) = (b) / 1.03   (d) = (b) / 1.07
                                                                                        \(a)\              \(a)\
----------------------------------------------------------------------------------------------------------------
1......................................................          -$280,074          -$271,917          -$261,751
2......................................................          -$280,074          -$263,997          -$244,627
3......................................................          -$280,317          -$256,530          -$228,822
4......................................................          -$280,317          -$249,058          -$213,852
5......................................................          -$280,560          -$242,014          -$200,035
6......................................................          -$290,136          -$242,984          -$193,330
7......................................................          -$290,379          -$236,105          -$180,833
8......................................................          -$290,379          -$229,228          -$169,003
9......................................................          -$290,622          -$222,738          -$158,079
10.....................................................          -$290,622          -$216,250          -$147,737
    Total..............................................        -$2,853,480        -$2,430,819        -$1,998,072
----------------------------------------------------------------------------------------------------------------
        Annualized.....................................  .................          -$284,966          -$284,481
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Total Cost Savings to Industry
    Table 30 presents the total annualized costs savings to industry 
over the 10-year period of analysis. At a 7-percent discount rate, the 
cost savings is approximately $303,805.

                                                   Table 30--Total Annualized Cost Savings to Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Total cost         Total cost                               Annualized cost savings
                           Year                                savings to         savings to         Total cost    -------------------------------------
                                                            manufacturers *       vessels **          savings               3%                 7%
(a)                                                                      (b)                (c)    (d) = (b) + (c)   (e) = (d) / 1.03   (f) = (d) / 1.07
                                                                                                                                \(a)\              \(a)\
--------------------------------------------------------------------------------------------------------------------------------------------------------
1........................................................           -$19,324          -$280,074          -$299,398          -$290,678          -$279,811
2........................................................            -19,324           -280,074           -299,398           -282,211           -261,506
3........................................................            -19,324           -280,317           -299,641           -274,214           -244,596
4........................................................            -19,324           -280,317           -299,641           -266,227           -228,595
5........................................................            -19,324           -280,560           -299,884           -258,683           -213,813
6........................................................            -19,324           -290,136           -309,460           -259,168           -206,206
7........................................................            -19,324           -290,379           -309,703           -251,817           -192,867
8........................................................            -19,324           -290,379           -309,703           -244,482           -180,250
9........................................................            -19,324           -290,622           -309,946           -237,548           -168,590
10.......................................................            -19,324           -290,622           -309,946           -230,629           -157,561
    Total................................................           -193,240         -2,853,480         -3,046,720         -2,595,657         -2,133,796
--------------------------------------------------------------------------------------------------------------------------------------------------------
        Annualized.......................................  .................  .................  .................           -304,290           -303,805
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.
* Table 19.
** Table 28.

Federal Government Cost Savings
    We estimate that this rule will reduce costs to the Federal 
Government, since the Coast Guard will no longer review COA 
applications, application renewals, or inspection reports for the 
equipment that is subject to this rule. The Coast Guard does not 
anticipate that this rule will generate any cost savings from vessels 
inspections, as this rule does not modify any inspection requirements.
Equipment Approval
    In addition to generating a cost savings to industry by removing 
COA application requirements, this rule will also create a cost savings 
to the Federal Government, as Coast Guard staff will no longer review 
new COA applications and renewals. We estimate that it takes 24 hours 
of a GS-14's time to review each new application and 4 hours to review 
each renewal.\40\ We estimate the cost of reviewing a new application 
at $2,672 (rounded) per applicant (24 hours x $111.34), and the cost 
for reviewing a renewal application at $445(rounded) per renewal (4 
hours x $111.34). In table 31, the cost of reviewing a new application 
is captured in column (b) and the cost of a renewal application is 
captured in column (d). In total, we estimate the Federal Government 
will save $4,735 each year, due to this rule removing the requirements 
of having to review COA applications.
---------------------------------------------------------------------------

    \40\ This is based on information from the subchapter Q ICR. For 
the wage rate, $111.34, please see the Wages section of this RA.

[[Page 68295]]



         Table 31--Annual Cost Savings to Federal Government for No Longer Having To Review New and Renewal Certificate of Approval Applications
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 New applications              Renewal applications
                                                                         ----------------------------------------------------------------  Total change
                        Equipment                            Approval      Total number                    Total number                      in cost =
                                                              series            of          Total cost          of          Total cost      total cost
                                                                           applications                    applications                       savings
                                                                                     (a)  (b) = (a) x [-             (c)  (d) = (c) x [-     (e) = (b) +
                                                                                                 $2,672]                           $445]             (d)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bilge pump..............................................         160.044            0.09           -$240            0.60           -$267           -$507
Compass.................................................         160.014            0.09            -240            0.60            -267            -507
First-aid kit for Lifeboats.............................         160.041            0.15            -401               1            -445            -846
First-aid kit for Liferafts.............................         160.054            0.15            -401               1            -445            -846
Fishing kit.............................................         160.061            0.03             -80            0.20             -89            -169
Hatchet.................................................         160.013            0.03             -80            0.20             -89            -169
Jackknife...............................................         160.043            0.03             -80            0.20             -89            -169
Mirror, Signaling.......................................         160.020            0.06            -160             0.4            -178            -338
Sea anchor..............................................         160.019            0.03             -80            0.20             -89            -169
Water...................................................         160.026            0.18            -481            1.20            -534           -1015
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................  ..............  ..............          -2,243  ..............          -2,492          -4,735
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Laboratory Inspections
    The Coast Guard currently requires manufacturers of some equipment 
to submit an annual report with the results of laboratory inspections, 
allowing the Coast Guard to ensure the production stock of the 
equipment will be identical to those originally tested and approved by 
the Coast Guard. This rule removes this reporting requirement for 
equipment that is now self-certified by the manufacturer. We were 
unable to obtain data about the costs related to laboratory 
inspections.
    We estimate that it takes approximately 2 hours of a GS-14 senior 
engineer's time to review each report, costing $223 (2 hours x 
$111.34). Table 32 presents the total annual cost saving to the Federal 
Government for no longer having to review laboratory inspection 
reports. We estimate these cost savings will be $5,352 per year.

                      Table 32--Annual Federal Government Cost Savings for No Longer Having to Review Laboratory Inspection Records
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 Baseline scenario           Post-regulatory scenario      Total change
                                                             Approval    ----------------------------------------------------------------    in cost =
                        Equipment                             series                                                                        total cost
                                                                          Total products    Total cost    Total products    Total cost        savings
                                                                                     (a)     (b) = (a) x             (c)     (d) = (c) x     (e) = (d) -
                                                                                                    $223                            $223             (b)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bilge pump..............................................         160.044               3            $669               0              $0           -$669
Compass.................................................         160.014               3             669               0               0            -669
First-aid kit for Lifeboats.............................         160.041               5           1,115               0               0          -1,115
First-aid kit for Liferafts.............................         160.054               5           1,115               0               0          -1,115
Mirror, Signaling.......................................         160.020               2             446               0               0            -446
Water...................................................         160.026               6           1,338               0               0          -1,338
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................  ..............              24           5,352               0               0           5,352
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Total Federal Government Savings
    Table 33 presents the total annual cost savings to the Federal 
Government. In total, the Coast Guard estimates this rule to generate a 
cost savings of approximately $10,087 per year.

                          Table 33--Total Annual Cost Savings to the Federal Government
----------------------------------------------------------------------------------------------------------------
                                                        New           Renewed         Avoided
            Equipment                Approval      applications    applications     inspection      Total cost
                                      series          avoided         avoided         reports         savings
                                                             (a)             (b)             (c)     (d) = (a) +
                                                                                                       (b) + (c)
----------------------------------------------------------------------------------------------------------------
Bilge pump......................         160.044           -$240           -$267           -$669         -$1,176
Compass.........................         160.014            -240            -267            -669          -1,176
First-aid kit for Lifeboats.....         160.041            -401            -445          -1,115          -1,961
First-aid kit for Liferafts.....         160.054            -401            -445          -1,115          -1,961

[[Page 68296]]

 
Fishing kit.....................         160.061             -80             -89               0            -169
Hatchet.........................         160.013             -80             -89               0            -169
Jackknife.......................         160.043             -80             -89               0            -169
Mirror, Signaling...............         160.020            -160            -178            -446            -784
Sea anchor......................         160.019             -80             -89               0            -169
Water...........................         160.026            -481            -534          -1,338          -2,353
                                 -------------------------------------------------------------------------------
    Total.......................  ..............          -2,243          -2,492          -5,352         -10,087
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Change in Safety
    Many of the current Coast Guard type approval requirements for 
survival craft equipment were developed in the 1950s and 1960s and have 
not been significantly updated since they were initially published. 
Upon a thorough review of these requirements, Coast Guard enforcement 
procedures, current maritime industry practice, and the availability of 
new international standards, we have determined that the additional 
scrutiny of the Coast Guard type approval does not increase or decrease 
the safety for the equipment subject to this rule. For these nine types 
of survival craft equipment, the current Coast Guard type approval 
requirements are outdated and overly prescriptive. Therefore, the Coast 
Guard anticipates that by having equipment meet consensus standards, as 
opposed to Coast Guard standards, there will be no decrease in the 
level of safety in the maritime environment.
No Cost Changes
    This rule will also implement several changes with no cost impacts. 
The vast majority of these changes are the result of modifying the 
current lifeboat equipment requirements for sailing school vessels as 
stated in Sec.  169.527 to align them with the requirements stated in 
Sec.  199.175. Table 34 summarizes these changes.

                          Table 34--Summary of Regulatory Changes With No Cost Impacts
----------------------------------------------------------------------------------------------------------------
                                  CFR subpart/        Affected
          Equipment                section(s)        population            Changes           Basis for no cost
----------------------------------------------------------------------------------------------------------------
Bailer.......................  Sec.   169.529(a)  New U.S.-flagged  Removes requirements   This is an
                                                   Sailing School    that bailers in        administrative
                                                   Vessels with      lifeboats on sailing   change that allows
                                                   Lifeboats.        school vessels meet    the Coast Guard to
                                                                     the requirements of    consolidate its
                                                                     Sec.   169.529(a)      survival craft
                                                                     and instead, they      equipment standards,
                                                                     must meet the          and the requirements
                                                                     requirements of Sec.   of Sec.  Sec.
                                                                       199.175(b)(1).       169.529(a) and
                                                                                            199.175(b)(1) are
                                                                                            identical.
Boathooks....................  Sec.   169.529(c)  New U.S.-flagged  Removes requirements   Sections 169.529(c)
                                                   Sailing School    that boathooks in      and 199.175(b)(3)
                                                   Vessels with      lifeboats on sailing   set different
                                                   Lifeboats.        school vessels meet    standards for
                                                                     the prescribed         boathooks; however,
                                                                     design requirements    only new U.S.-
                                                                     of Sec.   169.529(c)   flagged sailing
                                                                     and instead, they      school vessels will
                                                                     must meet the          be impacted by the
                                                                     requirements of Sec.   change, and the
                                                                       199.175(b)(3) and    Coast Guard
                                                                     be designed to         estimates that no
                                                                     minimize the           new U.S.-flagged
                                                                     possibility of         sailing school
                                                                     damage.                vessels will be
                                                                                            built during the
                                                                                            analysis period.
Can Openers..................               Sec.  All U.S.-flagged  Can openers must meet  ISO 18813 requires
                                   199.175(b)(5)   Vessels with      the standards of ISO   that can openers in
                                                   Lifeboats or      18813.                 liferafts be of the
                                                   Liferafts with                           safety type. The
                                                   SOLAS A packs.                           Coast Guard
                                                                                            estimates that all
                                                                                            liferafts are
                                                                                            currently equipped
                                                                                            with either a safety
                                                                                            can opener or a can
                                                                                            opener within the
                                                                                            jackknife;
                                                                                            therefore, this
                                                                                            change poses no
                                                                                            additional cost to
                                                                                            industry.
Cover, Protecting............               Sec.  New U.S.-flagged  Fully enclosed         Only new U.S.-flagged
                                     169.529(ll)   Sailing School    lifeboats on sailing   sailing school
                                                   Vessels with      school vessels do      vessels will be
                                                   Lifeboats.        not need to be         impacted by the
                                                                     equipped with a        change, and the
                                                                     cover.                 Coast Guard
                                                                                            estimates that no
                                                                                            new U.S.-flagged
                                                                                            sailing school
                                                                                            vessels will be
                                                                                            built during the
                                                                                            analysis period. In
                                                                                            addition, fully
                                                                                            enclosed lifeboats
                                                                                            do not require a
                                                                                            cover; therefore, it
                                                                                            is likely they are
                                                                                            not equipped with
                                                                                            one under the
                                                                                            baseline.

[[Page 68297]]

 
Ditty Bag....................  Sec.   169.529(f)  New U.S.-flagged  Motor-propelled        Only new U.S.-flagged
                                                   Sailing School    lifeboats on sailing   sailing school
                                                   Vessels with      school vessels no      vessels will be
                                                   Lifeboats.        longer need to carry   impacted by the
                                                                     a ditty bag.           change, and the
                                                                                            Coast Guard
                                                                                            estimates that no
                                                                                            new U.S.-flagged
                                                                                            sailing school
                                                                                            vessels will be
                                                                                            built during the
                                                                                            analysis period.
Drinking Cups................  Sec.   169.529(g)  New U.S.-flagged  Removes requirements   This is an
                                                   Sailing School    that drinking cups     administrative
                                                   Vessels with      in lifeboats on        change that allows
                                                   Lifeboats.        sailing school         the Coast Guard to
                                                                     vessels meet the       consolidate its
                                                                     requirements of Sec.   survival craft
                                                                       169.529(g) and       equipment standards,
                                                                     instead, they must     and the requirements
                                                                     meet the               of Sec.  Sec.
                                                                     requirements of Sec.   169.529(g) and
                                                                       199.175(b)(8).       199.175(b)(8) are
                                                                                            identical.
Fire Extinguisher............               Sec.  All New U.S.-     Updates fire           This change does not
                                     169.529(h),   flagged Vessels   extinguisher rating    require fire
                                            Sec.   with IBAs,        names from B-C, size   extinguishers meet
                                   199.175(b)(9)   Liferafts,        II to 40-B to match    any different
                                                   Lifeboats, or     other regulatory       requirements as laid
                                                   Rescue Boats.     text in title 46 of    out in the final
                                                                     the CFR.               rule,
                                                                                            ``Harmonization of
                                                                                            Standards for Fire
                                                                                            Protection,
                                                                                            Detection and
                                                                                            Extinguishing
                                                                                            Equipment'' (81 FR
                                                                                            482200 July 22,
                                                                                            2016), only that
                                                                                            they have a label.
                                                                                           A review of portable
                                                                                            marine fire
                                                                                            extinguishers found
                                                                                            that both the Coast
                                                                                            Guard and UL ratings
                                                                                            are currently
                                                                                            provided for each
                                                                                            product.
First-Aid Kits...............     Sec.   121.710  All U.S.-flagged  All medicinal          The Coast Guard
                                 Sec.   160.010-   Vessels with      products within the    estimates that,
                                     3(e)(7)(ii)   IBAs, Liferafts   first-aid kits must    under the baseline,
                                 Subpart 160.041   with a SOLAS A    use active             all medicinal
                                 Subpart 160.054   or B pack,        ingredients that       products meet U.S.
                                 Sec.   160.151-   Lifeboats, or     conform to OTC drug    OTC drug standards.
                                           21(h)   Rescue Boats.     regulations set out    The Coast Guard did
                               Sec.   169.529(i)   All small         in 21 CFR part 330.    an extensive inquiry
                                  Sec.   184.710   passenger                                to ensure that the
                               Sec.   199.050(c)   vessels in                               medicinal products
                                            Sec.   Subchapters K                            were FDA compliant.
                                  199.175(b)(10)   and T.
Flashlights..................  Sec.   169.529(j)  New U.S.-flagged  Removes requirement    This is an
                                                   Sailing School    that flashlights in    administrative
                                                   Vessels with      lifeboats on sailing   change that allows
                                                   Lifeboats.        school vessels meet    the Coast Guard to
                                                                     the prescribed         consolidate its
                                                                     design requirements    survival craft
                                                                     of Sec.   169.529(j)   equipment standards.
                                                                     and instead, they
                                                                     must meet the
                                                                     requirements of Sec.
                                                                       199.175(b)(12) and
                                                                     be constructed and
                                                                     marked according to
                                                                     the American Society
                                                                     for Testing and
                                                                     Materials' ASTM
                                                                     F1014 standard
                                                                     already incorporated
                                                                     by reference in that
                                                                     section.
Heaving Lines................  Sec.   169.529(l)  New U.S.-flagged  Removes requirement    This is an
                                                   Sailing School    that heaving lines     administrative
                                                   Vessels with      on lifeboats on        change that allows
                                                   Lifeboats.        sailing school         the Coast Guard to
                                                                     vessels meet the       consolidate its
                                                                     requirements of Sec.   survival craft
                                                                       169.529(l), and      equipment standards,
                                                                     instead, they must     and the requirements
                                                                     meet the               of Sec.  Sec.
                                                                     requirements of Sec.   169.529(l) and
                                                                       199.175(b)(14).      199.175(b)(14) are
                                                                                            identical.
Ladder.......................  Sec.   169.529(n)  New U.S.-flagged  Removes requirement    This is an
                                                   Sailing School    that ladders on        administrative
                                                   Vessels with      lifeboats on sailing   change that allows
                                                   Lifeboats.        school vessels meet    the Coast Guard to
                                                                     the requirements of    consolidate its
                                                                     Sec.   169.529(n),     survival craft
                                                                     and instead, they      equipment standards,
                                                                     must meet the          and the requirements
                                                                     requirements of Sec.   of Sec.  Sec.
                                                                       199.175(b)(18).      169.529(n) and
                                                                                            199.175(b)(18) are
                                                                                            identical.
Lanterns.....................  Sec.   169.529(o)  New U.S.-flagged  Removes requirement    Only new U.S.-flagged
                                                   Sailing School    that lifeboats on      sailing school
                                                   Vessels with      sailing school         vessels are impacted
                                                   Lifeboats.        vessels carry          by the change, and
                                                                     lanterns.              the Coast Guard
                                                                                            estimates that no
                                                                                            new U.S.-flagged
                                                                                            sailing school
                                                                                            vessels will be
                                                                                            built during the
                                                                                            analysis period.
Lifelines....................  Sec.   169.529(p)  New U.S.-flagged  Removes lifeline       This is an
                                                   Sailing School    standards from Sec.    administrative
                                                   Vessels with       169.529(p).           change, as lifelines
                                                   Lifeboats.                               are not survival
                                                                                            craft equipment and
                                                                                            are, instead,
                                                                                            regulated as part of
                                                                                            the lifeboat design
                                                                                            requirements under
                                                                                            Sec.   160.135-7.

[[Page 68298]]

 
Life Preservers..............  Sec.   169.529(q)  New U.S.-flagged  Removes requirement    Only new U.S.-flagged
                                                   Sailing School    that lifeboats on      sailing school
                                                   Vessels with      sailing school         vessels will be
                                                   Lifeboats.        vessels carry two      impacted by the
                                                                     additional life        change, and the
                                                                     preservers in their    Coast Guard
                                                                     lifeboat.              estimates that no
                                                                                            new U.S.-flagged
                                                                                            sailing school
                                                                                            vessels will be
                                                                                            built during the
                                                                                            analysis period.
Lockers......................  Sec.   169.529(r)  New U.S.-flagged  Removes requirement    Only new U.S.-flagged
                                                   Sailing School    that lifeboats on      sailing school
                                                   Vessels with      sailing school         vessels will be
                                                   Lifeboats.        vessels have lockers   impacted by the
                                                                     for the storage of     change, and the
                                                                     small items.           Coast Guard
                                                                                            estimates that no
                                                                                            new U.S.-flagged
                                                                                            sailing school
                                                                                            vessels will be
                                                                                            built during the
                                                                                            analysis period.
Mast and Sail................  Sec.   169.529(s)  New U.S.-flagged  Clarifies that motor-  Only new U.S.-flagged
                                                   Sailing School    propelled lifeboats    sailing school
                                                   Vessels with      on sailing school      vessels will be
                                                   Lifeboats.        vessels do not need    impacted by the
                                                                     to carry a mast or     change, and the
                                                                     sails.                 Coast Guard
                                                                                            estimates that no
                                                                                            new U.S.-flagged
                                                                                            sailing school
                                                                                            vessels will be
                                                                                            built during the
                                                                                            analysis period.
                                                                                           In addition,
                                                                                            motorized boats do
                                                                                            not require a mast
                                                                                            or sails; therefore,
                                                                                            they are not
                                                                                            equipped with them
                                                                                            under the baseline.
Matches......................  Sec.   169.529(t)  New U.S.-flagged  Removes requirement    Only new U.S.-flagged
                                                   Sailing School    that lifeboats on      sailing school
                                                   Vessels with      sailing school         vessels will be
                                                   Lifeboats.        vessels carry          impacted by the
                                                                     matches.               change, and the
                                                                                            Coast Guard
                                                                                            estimates that no
                                                                                            new U.S.-flagged
                                                                                            sailing school
                                                                                            vessels will be
                                                                                            built during the
                                                                                            analysis period.
Oars.........................  Sec.   169.529(v)  New U.S.-flagged  Removes requirement    This is an
                                                   Sailing School    that oars on           administrative
                                                   Vessels with      lifeboats on sailing   change that allows
                                                   Lifeboats.        school vessels meet    the Coast Guard to
                                                                     the requirements of    consolidate its
                                                                     Sec.   169.529(v),     survival craft
                                                                     and instead, they      equipment standards,
                                                                     must meet the          and the requirements
                                                                     requirements of Sec.   of Sec.  Sec.
                                                                       199.175(b)(20). In   169.529(v) and
                                                                     addition, the Coast    199.175(b)(20) are
                                                                     Guard is modifying     identical. There are
                                                                     the number of          no cost savings
                                                                     required oars from     because there are no
                                                                     four rowing and one    sailing school
                                                                     steering, to the       vessels with
                                                                     number required by     lifeboats.
                                                                     the manufacturer.     In addition, only new
                                                                                            U.S.-flagged sailing
                                                                                            school vessels will
                                                                                            be impacted by the
                                                                                            change, and the
                                                                                            Coast Guard
                                                                                            estimates that no
                                                                                            new U.S.-flagged
                                                                                            sailing school
                                                                                            vessels will be
                                                                                            built during the
                                                                                            analysis period.
Oil, Illuminating............  Sec.   169.529(w)  New U.S.-flagged  Removes requirement    Only new U.S.-flagged
                                                   Sailing School    that lifeboats on      sailing school
                                                   Vessels with      sailing school         vessels will be
                                                   Lifeboats.        vessels carry          impacted by the
                                                                     illuminating oil for   change, and the
                                                                     lanterns.              Coast Guard
                                                                                            estimates that no
                                                                                            new U.S.-flagged
                                                                                            sailing school
                                                                                            vessels will be
                                                                                            built during the
                                                                                            analysis period.
Oil, Storm...................  Sec.   169.529(x)  New U.S.-flagged  Removes requirement    Only new U.S.-flagged
                                                   Sailing School    that lifeboats on      sailing school
                                                   Vessels with      sailing school         vessels will be
                                                   Lifeboats.        vessels carry storm    impacted by the
                                                                     oil to calm the seas.  change, and the
                                                                                            Coast Guard
                                                                                            estimates that no
                                                                                            new U.S.-flagged
                                                                                            sailing school
                                                                                            vessels will be
                                                                                            built during the
                                                                                            analysis period.
Painters.....................  Sec.   169.529(y)  New U.S.-flagged  Removes requirement    This is an
                                                   Sailing School    that painters on       administrative
                                                   Vessels with      lifeboats on sailing   change that allows
                                                   Lifeboats.        school vessels meet    the Coast Guard to
                                                                     the requirements of    consolidate its
                                                                     Sec.   169.529(y),     survival craft
                                                                     and instead, they      equipment standards,
                                                                     must meet the          and the requirements
                                                                     requirements of Sec.   of Sec.  Sec.
                                                                       199.175(b)(21).      169.529(n) and
                                                                                            199.175(b)(18) are
                                                                                            identical.
Plug.........................  Sec.   169.529(z)  New U.S.-flagged  Removes plug           This is an
                                                   Sailing School    standards from Sec.    administrative
                                                   Vessels with       169.529(z).           change, as plugs are
                                                   Lifeboats.                               not survival craft
                                                                                            equipment and are,
                                                                                            instead, regulated
                                                                                            as part of the
                                                                                            lifeboat design
                                                                                            requirements under
                                                                                            Sec.   160.135-7

[[Page 68299]]

 
Provisions...................    Subpart 160.046  All               Adds to the scope:     This is an
                                                   manufacturers     emergency provisions   administrative
                                                   of Coast Guard-   approved to be         change, as this rule
                                                   approved          carried in lifeboats   will update Sec.
                                                   provisions.       and liferafts. These   199.175(b)(22) and
                                                                     provisions meet the    add regulatory text
                                                                     IMO recommendations    to subpart 160.046
                                                                     for emergency food     stating that the
                                                                     rations.               provisions or food
                                                                                            rations must comply
                                                                                            with ISO 18813
                                                                                            paragraph 4.31,
                                                                                            which is the same as
                                                                                            the current
                                                                                            standard.
Rowlocks.....................               Sec.  New U.S.-flagged  Removes requirement    This is an
                                     169.529(bb)   Sailing School    that rowlocks on       administrative
                                                   Vessels with      lifeboats on sailing   change that allows
                                                   Lifeboats.        school vessels meet    the Coast Guard to
                                                                     the requirements of    consolidate its
                                                                     Sec.   169.529(bb)     survival craft
                                                                     and instead, they      equipment standards,
                                                                     must meet the          and the requirements
                                                                     requirements of Sec.   of Sec.  Sec.
                                                                       199.175(b)(20).      169.529(bb) and
                                                                                            199.175(b)(20) are
                                                                                            identical.
Rudder and Tiller............               Sec.  New U.S.-flagged  Removes rudder and     This is an
                                     169.529(cc)   Sailing School    tiller standards       administrative
                                                   Vessels with      from Sec.              change, as Sec.
                                                   Lifeboats.        169.529(cc), which     169.035-3(f) was
                                                                     state the rudder and   removed previously
                                                                     tiller must be         from the CFR, and
                                                                     constructed            the section no
                                                                     according to Sec.      longer exists.
                                                                     169.035-3(f).
Signals, Distress Floating                  Sec.  New and Existing  Removes requirement    The change will apply
 Orange Smoke.                       169.529(ee)   U.S.-flagged      that distress          to both new U.S.-
                                                   Sailing School    floating orange        flagged sailing
                                                   Vessels with      smoke signals on       school vessels with
                                                   Lifeboats.        lifeboats on sailing   lifeboats, and
                                                                     school vessels meet    existing sailing
                                                                     the requirements of    school vessels with
                                                                     Sec.   169.529(ee),    lifeboats, as these
                                                                     and instead, they      vessels will have to
                                                                     must meet the          replace their smoke
                                                                     requirements of Sec.   signals after they
                                                                       199.175(b)(30).      expire.
                                                                                           The Coast Guard
                                                                                            estimates that no
                                                                                            new U.S.-flagged
                                                                                            sailing school
                                                                                            vessels will be
                                                                                            built during the
                                                                                            analysis period. In
                                                                                            addition, there are
                                                                                            no existing sailing
                                                                                            school vessels with
                                                                                            lifeboats;
                                                                                            therefore, no
                                                                                            existing vessels
                                                                                            will be impacted by
                                                                                            the change.
Signals, Distress Red Hand                  Sec.  All U.S.-flagged  Removes requirement    The change will apply
 Flare.                              169.529(ff)   Sailing School    that distress red      to both new U.S.-
                                                   Vessels with      hand flare signals     flagged sailing
                                                   Lifeboats.        on lifeboats on        school vessels with
                                                                     sailing school         lifeboats, and
                                                                     vessels meet the       existing sailing
                                                                     requirements of Sec.   school vessels with
                                                                       169.529(ff), and     lifeboats, as these
                                                                     instead, they must     vessels will have to
                                                                     meet the               replace their smoke
                                                                     requirements of Sec.   signals after they
                                                                       199.175(b)(31).      expire.
                                                                                           The Coast Guard
                                                                                            estimates that no
                                                                                            new U.S.-flagged
                                                                                            sailing school
                                                                                            vessels will be
                                                                                            built during the
                                                                                            analysis period. In
                                                                                            addition, there are
                                                                                            no existing sailing
                                                                                            school vessels with
                                                                                            lifeboats;
                                                                                            therefore, no
                                                                                            existing vessels
                                                                                            will be impacted by
                                                                                            the change.
Signals, Distress Red                       Sec.  All U.S.-flagged  Removes requirement    The change will apply
 Parachute Flare.                    169.529(gg)   Sailing School    that distress red      to both new U.S.-
                                                   Vessels with      parachute flares on    flagged sailing
                                                   Lifeboats.        lifeboats on sailing   school vessels with
                                                                     school vessels meet    lifeboats and
                                                                     the requirements of    existing sailing
                                                                     Sec.   169.529(gg),    school vessels with
                                                                     and instead, they      lifeboats, as these
                                                                     must meet the          vessels will have to
                                                                     requirements of Sec.   replace their smoke
                                                                       199.175(b)(32).      signals after they
                                                                                            expire.
                                                                                           The Coast Guard
                                                                                            estimates that no
                                                                                            new U.S.-flagged
                                                                                            sailing school
                                                                                            vessels will be
                                                                                            built during the
                                                                                            analysis period. In
                                                                                            addition, there are
                                                                                            no existing sailing
                                                                                            school vessels with
                                                                                            lifeboats;
                                                                                            therefore, no
                                                                                            existing vessels
                                                                                            will be impacted by
                                                                                            the change.
Table of Lifesaving Signals..               Sec.  New U.S.-flagged  Removes requirement    This is an
                                     169.529(mm)   Sailing School    that table of          administrative
                                                   Vessels with      lifesaving signals     change that allows
                                                   IBAs,             on lifeboats on        the Coast Guard to
                                                   Liferafts,        sailing school         consolidate its
                                                   Lifeboats, or     vessels meet the       survival craft
                                                   Rescue Boats.     requirements of Sec.   equipment standards,
                                                                       169.529(mm), and     and the requirements
                                                                     instead, they must     of Sec.  Sec.
                                                                     meet the               169.529(mm) and
                                                                     requirements of Sec.   199.175(b)(36) are
                                                                       199.175(b)(36).      identical.

[[Page 68300]]

 
Tool Kit.....................               Sec.  New U.S.-flagged  Removes requirements   This is an
                                     169.529(hh)   Sailing School    that toolkits on       administrative
                                                   Vessels with      lifeboats on sailing   change that allows
                                                   IBAs,             school vessels meet    the Coast Guard to
                                                   Liferafts,        the requirements of    consolidate its
                                                   Lifeboats, or     Sec.   169.529(hh),    survival craft
                                                   Rescue Boats.     and instead, they      equipment standards,
                                                                     must meet the          and the requirements
                                                                     requirements of Sec.   of Sec.  Sec.
                                                                       199.175(b)(38).      169.529(hh) and
                                                                                            199.175(b)(38) are
                                                                                            identical.
Whistle......................               Sec.  New U.S.-Flagged  Removes requirement    This is an
                                     169.529(jj)   Sailing School    that whistles on       administrative
                                                   Vessels with      lifeboats on sailing   change that allows
                                                   IBAs,             school vessels meet    the Coast Guard to
                                                   Liferafts,        the requirements of.   consolidate its
                                                   Lifeboats, or    Sec.   169.529(jj),     survival craft
                                                   Rescue Boats.     and instead, they      equipment standards,
                                                                     must meet the          and the requirements
                                                                     requirements of Sec.   of Sec.  Sec.
                                                                       199.175(b)(41).      169.529(jj) and
                                                                                            199.175(b)(41) are
                                                                                            identical.
----------------------------------------------------------------------------------------------------------------

Total Cost Savings
    Table 35 presents the total annualized cost savings of this final 
rule to both industry and the Federal Government for the 10-year period 
of analysis. The Coast Guard estimates an annualized cost savings of 
approximately $314,377 with a 3-percent discount rate, and $313,892 
with a 7-percent discount rate.

                   Table 35--Total Annualized Cost Savings to Industry and Federal Government
----------------------------------------------------------------------------------------------------------------
                                                    Total cost                        Annualized cost savings
                                    Total cost      savings to      Total cost   -------------------------------
              Year                  savings to        federal         savings
                                    industry *     government **                        3%              7%
(a)                                          (b)             (c)     (d) = (b) +     (e) = (d) /     (f) = (d) /
                                                                             (c)      1.03 \(a)\      1.07 \(a)\
----------------------------------------------------------------------------------------------------------------
1...............................       -$299,398        -$10,087       -$309,485       -$300,471       -$289,238
2...............................        -299,398         -10,087        -309,485        -291,719        -270,316
3...............................        -299,641         -10,087        -309,728        -283,445        -252,830
4...............................        -299,641         -10,087        -309,728        -275,189        -236,290
5...............................        -299,884         -10,087        -309,971        -267,384        -221,005
6...............................        -309,460         -10,087        -319,547        -267,616        -212,928
7...............................         309,703          10,087         319,790         260,019         199,149
8...............................        -309,703         -10,087        -319,790        -252,445        -186,121
9...............................        -309,946         -10,087        -320,033        -245,279        -174,077
10..............................        -309,946         -10,087        -320,033        -238,135        -162,689
                                 -------------------------------------------------------------------------------
    Total.......................      -3,046,720        -100,870      -3,147,590      -2,681,701      -2,204,643
        Annualized..............  ..............  ..............  ..............         314,377         313,892
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.
* Table 30.
** Table 33.

Discussion of Alternatives
    When creating this rule, the Coast Guard considered four 
alternatives, one of which was suggested by public comment. In this 
section, we examine how the cost of the rulemaking changes with each 
alternative.
Alternative 1: No Action
    Using this alternative, the Coast Guard will accept the status quo 
and not replace the current approval requirements with an international 
consensus standard. This alternative will not harmonize Coast Guard 
standards with industry consensus standards, nor reduce the burden to 
industry. This will not incur approximately $314,000 in annual cost 
savings with no estimated benefits.
Alternative 2: Preferred Alternative--Remove the Need for Coast Guard 
Approval
    Using this alternative, the Coast Guard will implement the changes 
regarding the removal of Coast Guard approval standards. This will lead 
to an estimated $314,000 in annual cost savings without any estimated 
reduction in benefits, as this analysis shows.
Alternative 3: Remove the Need for Coast Guard Approval and Marking 
Requirements
    Under this alternative, the Coast Guard will implement the changes 
in the preferred alternative, but will, in addition, remove the 
requirement that equipment be marked to indicate it meets ISO 25862, 
ISO 17339, or ISO 18813. This will lead to an additional annual cost 
savings of approximately $397,433. We estimate this by multiplying 
254,765 pieces of equipment by $1.56 (allowing 0.06 hours x $26 
production rate per hour for the time and cost to mark each piece of 
equipment). This will lead to a total cost savings of $711,433, which 
we calculated by adding the additional savings from no markings 
($397,433) to the total estimated cost savings of this rule, as shown 
in alternative 2 ($314,000).
    We rejected this alternative for the preferred alternative, since 
eliminating the markings will make it impossible for the Coast Guard to 
verify if equipment complies with regulations. This alternative could 
potentially lead to a decrease in safety, if vessel owners and 
operators purchased non- ISO-

[[Page 68301]]

compliant products that were not sufficiently safe or reliable for 
usage on board a survival craft. The potential for the additional 
burden on the Coast Guard to research and ascertain the compliance 
status of a piece of survival craft equipment could lead to much more 
significant costs than the current additional cost of $397,433 from 
marking equipment.
Alternative 4: Require Manufacturers To Cover the Cost of a COA
    The Coast Guard received a public comment suggesting that the 
manufacturers should cover the cost of COAs. We interpreted this 
comment as suggesting that manufacturers should reimburse the Coast 
Guard for the estimated $2,672 in cost per new COA and the $445 in cost 
per renewal COA. This alternative will introduce a transfer to cover 
the Coast Guard's cost of the approvals. Because this alternative will 
introduce a transfer, there will be no net cost saving from this 
action. Instead, manufacturing firms will experience an extra $2,672 in 
costs each time they apply for a new COA and an extra $445 in costs 
each time they try to renew a COA. By raising the costs of approval, 
the Coast Guard will be increasing entry barriers to manufacturing PFD 
devices.
    Additionally, because our preferred alternative removes the 
requirements for a COA on nine types of equipment, this alternative 
will decrease cost savings by both the government cost savings of 
$4,735 and the industry cost savings of $336. Because this alternative 
will not decrease costs, and increases the entry barrier faced by 
manufacturing firms, we rejected this alternative.

B. Small Entities

    Under the Regulatory Flexibility Act, 5 U.S.C. 601-612, we have 
considered whether this rule will 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.
    The Coast Guard expects that this rule will not have a significant 
economic impact on small entities. We expect this rule to result in net 
cost savings to regulated entities.
    We added two years of data to our data analysis in the NPRM; 
however, the random sample of our dataset is still valid. Using the 
same number of companies we used in the proposed rule for the final 
rule, we estimate there to be 11,139 unique vessel operators and 16 
equipment manufacturers affected by this rule. For this analysis, we 
presumed any company for which we were not able to find Small Business 
Administration (SBA) size data to be a small entity. An estimated 94 
percent of the regulated entities (including the companies without SBA 
size data) are considered to be small by SBA industry size standards. 
Using MISLE data, the Coast Guard estimates there to be 11,155 unique 
companies affected in this rule, of which 10,487 (0.94 x 11,155) are 
small. We estimate that the average costs to equipment manufacturers 
will be reduced by $1,418 per year, and the average costs to vessel 
owners and operators will be reduced by $60 per year as a result of 
removing Coast Guard approval for the equipment subject to this 
rulemaking. We found that all small vessel operators and small 
equipment manufacturers impacted by this rule will have a cost savings 
less than 1 percent of their annual revenue. No small governmental 
jurisdictions will be impacted by this rule.
    Therefore, the Coast Guard certifies under 5 U.S.C. 605(b) that 
this rule will not have a significant economic impact on a substantial 
number of small entities.

C. Assistance for Small Entities

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

D. Collection of Information

    This rule calls for a revision to an approved 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: Title 46 CFR Subchapter Q: Lifesaving, Electrical, 
Engineering and Navigation Equipment, Construction and Materials & 
Marine Sanitation Devices (33 CFR 159).
    OMB Control Number: 1625-0035.
    Summary of the Collection of Information: The Coast Guard currently 
collects information from lifesaving equipment manufacturers under 46 
CFR chapter I, subchapter Q. The current ICR, 201811-1625-005 (OMB 
Control Number 1625-0035), accounts for the following collections of 
information: New Approval Applications, Renewal Approval Applications, 
Manufacturer Recordkeeping, Servicing Facility Recordkeeping, Servicing 
Facility Problem Reports, Instruction Materials, Markings, Production 
Tests and Laboratory Inspections, and Independent Laboratory 
Applications and Recognized Laboratory Applications.
    Need for Information: The Coast Guard needs this information to 
ensure that the manufactured safety equipment meets minimum levels of 
performance safety and helps prevent death, injuries, and property 
damage associated with commercial maritime operations.
    Proposed Use of Information: The Coast Guard uses the technical 
plans, drawings, specifications, instruction materials, and markings to 
determine compliance with the technical regulatory requirements for 
each piece of equipment. Independent laboratory reports ensure that 
product and material testing complies with the applicable Coast Guard 
regulations. Production testing reports ensure that the production 
stock of the equipment is identical to the stock that was originally 
tested and approved by the Coast Guard. Independent and recognized 
laboratory applications ensure that the laboratories have the technical 
capabilities to conduct the required testing and are independent for 
the organizations whose products they will test.
    Description of the Respondents: The respondents are manufacturers 
of the safety equipment subject to Coast Guard approval, accepted and 
recognized independent laboratories that conduct testing of the 
equipment, and liferaft servicing facilities.
    Number of Respondents: The Coast Guard estimates there will be 856

[[Page 68302]]

respondents, comprised of 480 equipment manufacturers, 233 liferaft 
servicing facilities, 139 accepted independent laboratories, and 4 
recognized independent laboratories. This rule will impact 16 of these 
respondents. We do not expect this rule to reduce the total number of 
respondents, because equipment manufacturers may still manufacture 
other Coast Guard-approved lifesaving equipment that is not subject to 
this rule.
    Frequency of Response: The number of responses per year will vary 
by requirement. New application materials, instructions, and markings 
are required with the initial COA application, and renewal application 
materials and markings are required 5 years after the initial 
application. Production test records and laboratory inspection records 
are required to be kept annually. The Coast Guard estimates this rule 
will reduce the number of responses for the following collections of 
information, presented in table 37, along with the current estimated 
time to complete each collection.

           Table 37--Time Burden Estimate by Application Type
------------------------------------------------------------------------
                                                               Hours
------------------------------------------------------------------------
New Application.........................................               2
Renewal Applications....................................             0.5
Manufacturer Records....................................            0.17
Packing Instruction Materials...........................             0.1
Markings for New Products...............................             0.1
Marking for Revisions...................................             0.1
Testing Records.........................................               2
Laboratory Inspection Records...........................              24
------------------------------------------------------------------------

    In table 38, we estimate the reduction in the number of annual 
responses based on application type.

                       Table 38--Number of Responses Reduced Annually by Application Type
----------------------------------------------------------------------------------------------------------------
                                                                     Previous
                          Response type                            iteration of      Change in      Updated ICR
                                                                  ICR Appendix B      burden        Appendix B
----------------------------------------------------------------------------------------------------------------
New Application.................................................              82               1              81
Renewal Applications............................................             544               6             538
Manufacturer Records............................................           2,715              27           2,688
Packing Instruction Materials...................................         272,200             800         271,400
Markings for New Products.......................................          13,575               5          13,570
Marking for Revisions...........................................         108,600              40         108,560
Testing Records.................................................           1,828               6           1,820
Laboratory Inspection Records...................................           1,828               6           1,820
----------------------------------------------------------------------------------------------------------------

    Burden of Response: This rule will not modify the burden of 
response for any other existing collections of information.
    Estimate of Total Annual Burden: The current ICR estimates the 
total annual burden to be 114,586 hours. As a result of this rule, we 
estimate the annual burden will be 86,430 hours, for an annual 
reduction of 28,156 hours. Together, these changes account for a total 
annual reduction in burden of 27,903 hours. These changes are 
summarized in table 39.

                Table 39--Summary of the Change in Burden
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Baseline total burden...................................         114,586
Program Changes.........................................         -27,903
Adjustment Changes......................................            -253
Total Changes...........................................         -28,156
Proposed Total Burden...................................          86,430
------------------------------------------------------------------------

    This rule is making an adjustment to the current OMB ICR. As 
required by 44 U.S.C. 3507(d), we will submit a copy of this 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.
    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 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, e.g., United States v. Locke, 529 U.S. 89 (2000) (finding 
that the States are foreclosed from regulating tanker vessels), see 
also Ray v. Atlantic Richfield Co., 435 U.S. 151, 157 (1978) (State 
regulation is preempted where ``the scheme of federal regulation may be 
so pervasive as to make reasonable the inference that Congress left no 
room for the States to supplement it [or where] the Act of Congress may 
touch a field in which the federal interest is so dominant that the 
federal system will be assumed to preclude enforcement of state laws on 
the same subject.'' (Citations omitted)) Because this rule involves the 
design, maintenance, and equipping of vessels; specifically regarding 
certain survival craft equipment required to be carried in survival 
craft and rescue boats on certain, specified U.S.-flagged vessels, it 
relates to vessel standards that are subject to a pervasive scheme of 
Federal regulation and is therefore foreclosed from regulation by the 
States. 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.

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

[[Page 68303]]

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 an expenditure, we do 
discuss the effects of this rule elsewhere in this preamble.

G. Taking of Private Property

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

H. Civil Justice Reform

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

I. Protection of Children

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

J. Indian Tribal Governments

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

K. Energy Effects

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

L. Technical Standards and Incorporation by Reference

    The National Technology Transfer and Advancement Act, codified as a 
note to 15 U.S.C. 272, directs agencies to use voluntary consensus 
standards in their regulatory activities unless the agency provides 
Congress, through OMB, with an explanation of why using these standards 
will be inconsistent with applicable law or otherwise impractical. 
Voluntary consensus standards are technical standards (e.g., 
specifications of materials, performance, design, or operation; test 
methods; sampling procedures; and related management systems practices) 
that are developed or adopted by voluntary consensus standards bodies.
    This rule uses the following voluntary consensus standards: ASTM 
F1003-02, ASTM F1014-02, ISO 18813:2006, ISO 25862:2009, and ISO 
17339:2018. The sections that reference these standards and the 
locations where these standards are available are listed in 46 CFR 
160.046-3 and 199.05.
    This rule uses technical standards developed by voluntary consensus 
standards bodies to meet the stringent equipment requirements for 
survival craft and rescue boats on board U.S.-flagged vessels. These 
standards provide internationally accepted and recognized parameters 
that equipment must meet in order to ensure its safety, proper usage, 
and preservation on the seas. The standards being incorporated were 
developed by either the ASTM or the ISO, which are voluntary consensus 
standard-setting organizations. The sections that reference these 
standards and the locations where these standards are available are 
listed in 46 CFR parts 160 and 199.
    Two ASTM standards will be updated and incorporated by reference in 
this rulemaking: (1) ASTM F1003-02 (Reapproved 2007), ``Standard 
Specification for Searchlights on Motor Lifeboats'' (2007); and (2) 
ASTM F1014-02 (Reapproved 2007), ``Standard Specification for 
Flashlights on Vessels'' (2002).
    These ASTM standards specify requirements for construction of 
searchlights and flashlights (respectively), including materials, 
dimensions, performance, and capability. The newer versions of these 
standards are not materially different from the previous versions. We 
are not updating the third ASTM standard already incorporated in Sec.  
199.05, ASTM 93-97, ``Standard Test Methods for Flash Point by Pensky-
Martens Closed Cup Tester.''
    The following three ISO standards are incorporated by reference in 
this rulemaking:
    1. ISO 18813:2006, Ships and marine technology--Survival equipment 
for survival craft and rescue boats.
    This standard specifies design, performance, and use of various 
items of survival equipment carried in survival craft and rescue boats 
complying with SOLAS and the LSA Code. It also includes guidelines for 
maintenance and periodic inspections by Administrations or ships' crews 
for many items.
    2. ISO 25862:2009, Ships and marine technology--Marine magnetic 
compasses, binnacles and azimuth reading devices.
    This standard gives requirements regarding construction and 
performance of marine magnetic compasses for navigation and steering 
purposes, binnacles, and azimuth reading devices.
    3. ISO 17339:2018, Ships and marine technology--Life saving and 
fire protection--Sea anchors for survival craft and rescue boats.
    This standard specifies requirements for the design, performance, 
and prototype testing of sea anchors fitted to survival craft 
(liferafts and lifeboats) and rescue boats in accordance with the LSA 
Code.
    With this rulemaking, we also updated our incorporation by 
reference of International Code for the Construction and Equipment of 
Ships Carrying Dangerous Chemicals in Bulk (IBC Code), 2016 edition, 
and the Amendments to the International Code for the Construction and 
Equipment of Ships Carrying Liquefied Gases in Bulk, (IGC Code), 
adopted May 22, 2014, to reflect the updated editions. No changes to 
the specific referenced material have been made between the older 
editions and the more recent editions. The IBC Code provides an 
international standard for the safe transport by sea of dangerous and 
noxious liquid chemicals in bulk. The purpose of the IGC Code is to 
provide an international standard for the safe transport by sea in bulk 
of liquefied gases and certain other substances.
    The Director of the Federal Register has approved the material in 
Sec. Sec.  160.046-3 and 199.05 for incorporation by reference under 5 
U.S.C. 552 and 1 CFR part 51. Copies of the material are available from 
the sources listed in Sec. Sec.  160.046-3 and 199.05.
    Consistent with 1 CFR part 51 incorporation by reference 
provisions, this material is reasonably available. Interested persons 
have access to it through their normal course of business, may purchase 
it from the organization identified in 46 CFR 160.046-3 or 199.05, or 
may view a copy by means we have identified in those sections.

M. Environment

    We have analyzed this rule under Department of Homeland Security 
Management Directive 023-01, Rev. 1, associated implementing 
instructions, and Environmental Planning

[[Page 68304]]

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 paragraphs 
L52, L57, and L58 of Appendix A, Table 1 of DHS Instruction Manual 023-
01-001-01, Rev. 1. Paragraph L52 pertains to regulations concerning 
vessel and operation safety standards. Paragraph L57 pertains to 
regulations concerning manning, documentation, admeasurements, 
inspection, and equipping of vessels. Paragraph L58 pertains to 
regulations concerning equipment approval and carriage requirements.
    This rule removes the Coast Guard type approval requirement for 
some survival craft equipment, and replaces it with the requirement 
that the manufacturer self-certify that their equipment complies with a 
consensus standard.

List of Subjects

46 CFR Part 121

    Communications equipment, Marine safety, Navigation (water), 
Passenger vessels.

46 CFR Part 160

    Incorporation by reference, Marine safety, Reporting and 
recordkeeping requirements.

46 CFR Part 169

    Fire prevention, Incorporation by reference, Marine safety, 
Reporting and recordkeeping requirements, Schools, Vessels.

46 CFR Part 184

    Communications equipment, Marine safety, Navigation (water), 
Passenger vessels, Reporting and recordkeeping requirements.

46 CFR Part 199

    Cargo vessels, Incorporation by reference, Marine safety, Oil and 
gas exploration, Passenger vessels, Reporting and recordkeeping 
requirements.

    For the reasons discussed in the preamble, the Coast Guard amends 
46 CFR parts 121, 160, 169, 184, and 199 as follows:

PART 121--VESSEL CONTROL AND MISCELLANEOUS SYSTEMS AND EQUIPMENT

0
1. The authority citation for part 121 is revised to read as follows:

    Authority: 46 U.S.C. 2103, 3306; E.O. 12234, 45 FR 58801, 3 CFR, 
1980 Comp., p. 277; DHS Delegation 00170.1, Revision No. 01.2.


0
2. Revise Sec.  121.710 to read as follows:


Sec.  121.710  First-aid kits.

    A vessel must carry either a first-aid kit that meets the 
requirements in 46 CFR 199.175(b)(10) or a kit with equivalent contents 
and instructions. For equivalent kits, the contents must be stowed in a 
suitable, watertight container that is marked ``First-Aid Kit''. A 
first-aid kit must be easily visible and readily available to the crew.

PART 160--LIFESAVING EQUIPMENT

0
3. The authority citation for part 160 is revised to read as follows:

    Authority: 46 U.S.C. 2103, 3103, 3306, 3703, 4102, 4302, and 
4502; and DHS Delegation 00170.1, Revision No. 01.2, paragraph 
(II)(92)(b).


0
4. Amend Sec.  160.010-3 by revising paragraphs (a)(12)(ii) and 
(e)(7)(ii) to read as follows:


Sec.  160.010-3  Inflatable buoyant apparatus.

    (a) * * *
    (12) * * *
    (ii) Knives. One knife, of a type designed to minimize the chance 
of damage to the inflatable buoyant apparatus and secured with a 
lanyard ready for use near the painter attachment. Any knife may be 
replaced with a jackknife meeting the requirements in 46 CFR 
199.175(b)(16). In addition, an inflatable buoyant apparatus that is 
permitted to accommodate 13 persons or more must be provided with a 
second knife that is of the non-folding type;
* * * * *
    (e) * * *
    (7) * * *
    (ii) First-aid kit. A first-aid kit as described in 46 CFR 
199.175(b)(10);
* * * * *

Subpart 160.013 [Removed and Reserved]

0
5. Remove and reserve subpart 160.013, consisting of Sec. Sec.  
160.013-1 through 160.013-5.

Subpart 160.026 [Removed and Reserved]

0
6. Remove and reserve subpart 160.026, consisting of Sec. Sec.  
160.026-1 through 160.026-7.

Subpart 160.041 [Removed and Reserved]

0
7. Remove and reserve subpart 160.041, consisting of Sec. Sec.  
160.041-1 through 160.041-6.

Subpart 160.043 [Removed and Reserved]

0
8. Remove and reserve subpart 160.043, consisting of Sec. Sec.  
160.043-1 through 106.043-6.

Subpart 160.044 [Removed and Reserved]

0
9. Remove and reserve subpart 160.044, consisting of Sec. Sec.  
160.044-1 through 160.044-5.

0
10. Add subpart 160.046, consisting of Sec. Sec.  160.046-1 through 
160.046-11, to read as follows:
Subpart 160.046--Emergency Provisions
Sec.
160.046-1 Scope.
106.046-3 Incorporation by reference.
160.046-5 General requirements for emergency provisions.
160.046-7 Independent laboratory.
160.046-9 Manufacturer certification and labeling.
160.046-11 Manufacturer notification.


Sec.  160.046-1  Scope.

    This subpart applies to emergency provisions approved to be carried 
in lifeboats and liferafts, in accordance with 46 CFR 199.175(b)(22).


Sec.  160.046-3  Incorporation by reference.

    (a) Certain material is incorporated by reference into this subpart 
with the approval of the Director of the Federal Register under 5 
U.S.C. 552(a) and 1 CFR part 51. All approved incorporation by 
reference (IBR) material is available for inspection at the Coast Guard 
Headquarters. Contact the Coast Guard at: Commandant (CG-ENG-4), U.S. 
Coast Guard Stop 7509, 2703 Martin Luther King Jr. Avenue SE, 
Washington, DC 20593-7509; email: [email protected]; website: 
www.dco.uscg.mil/CG-ENG-4/. It is also available for inspection at the 
National Archives and Records Administration (NARA). For information on 
the availability of this material at NARA, email 
[email protected]; website: www.archives.gov/federal-register/cfr/ibr-locations.html. All approved material is available from the 
source(s) listed in this section.

[[Page 68305]]

    (b) International Organization for Standardization (ISO), Chemin de 
Blandonnet 8, CP 401, 1214 Vernier, Geneva, Switzerland; phone: +41 22 
749 01 11; email: [email protected]; web: www.iso.org.
    (1) ISO 18813:2006(E), Ships and marine technology--Survival 
equipment for survival craft and rescue boats, First edition, April 1, 
2006; IBR approved for Sec. Sec.  160.046-5; 160.046-7; 160.046-11.
    (2) [Reserved]


Sec.  160.046-5  General requirements for emergency provisions.

    Emergency provisions must meet the requirements found in ISO 
18813:2006(E) paragraph 4.31 (incorporated by reference, see Sec.  
160.046-3).


Sec.  160.046-7  Independent laboratory.

    Unless the Commandant directs otherwise, an independent laboratory 
accepted by the Coast Guard under 46 CFR part 159, subpart 159.010, 
must perform or witness, as appropriate, inspections, tests, and 
oversight required by ISO 18813:2006(E) paragraph 4.31 (incorporated by 
reference, see Sec.  160.046-3). Approval and production tests of 
emergency provisions must be carried out in accordance with the 
procedures for independent laboratory inspections in 46 CFR part 159, 
subpart 159.007, and in this section unless the Commandant authorizes 
alternative tests and inspections. The Commandant may prescribe 
additional production tests and inspections necessary to maintain 
quality control and to monitor compliance with the requirements of this 
subpart.


Sec.  160.046-9  Manufacturer certification and labeling.

    (a) Each provision must be certified by the manufacturer as 
complying with the requirements of this subpart.
    (b) The container should be clearly and permanently marked with:
    (1) The name and address of the approval holder;
    (2) The U.S. Coast Guard Approval number;
    (3) The total food energy value of provisions in the container in 
calories and kiloJoules;
    (4) The lot number;
    (5) The month and year the provision was packed; and
    (6) The month and year of expiration (5 years after the date of 
packing).
    (c) The emergency provision must include waterproof instructions 
for use, assuming consumption of 3350 kiloJoules per person per day.


Sec.  160.046-11  Manufacturer notification.

    (a) Each manufacturer of emergency provisions approved in 
accordance with the specifications of this subpart must send a test 
report required by ISO 18813:2006(E) paragraph 4.31.2 (incorporated by 
reference, see Sec.  160.046-3) to the Commandant (CG-ENG-4), U.S. 
Coast Guard Stop 7509, 2703 Martin Luther King Jr. Avenue SE, 
Washington, DC 20593-7509 or email [email protected]:
    (1) With the application for approval;
    (2) Every year as long as the manufacturer continues to produce 
provisions; and
    (3) Each time the contents of the emergency provisions change.
    (b) [Reserved]

0
11. Amend Sec.  160.051-11 by revising paragraph (b) to read as 
follows:


Sec.  160.051-11  Equipment required for Coastal Service inflatable 
liferafts.

* * * * *
    (b) Knife. One knife, of a type designed to minimize the chance of 
damage to the inflatable liferaft and secured with a lanyard. In 
addition, an inflatable liferaft that is permitted to accommodate 13 
persons or more must be provided with a second knife that is of the 
non-folding type. Any knife may be replaced with a jackknife meeting 
the requirements in 46 CFR 199.175(b)(16).

Subpart 160.054 [Removed and Reserved]

0
12. Remove and reserve subpart 160.054, consisting of Sec. Sec.  
160.054-1 through 106.054-7.

Subpart 160.061 [Removed and Reserved]

0
13. Remove and reserve subpart 160.061, consisting of Sec. Sec.  
160.061-1 through 106.061-5.

0
14. Amend Sec.  160.135-7 by revising paragraph (b)(23) to read as 
follows:


Sec.  160.135-7  Design, construction, and performance of lifeboats.

* * * * *
    (b) * * *
    (23) Bilge pump. Each lifeboat that is not automatically self-
bailing must be fitted with a manual bilge pump that meets the 
requirements in 46 CFR 199.175(b)(2). Each such lifeboat with a 
capacity of 100 persons or more must carry an additional manual bilge 
pump or an engine-powered bilge pump.
* * * * *

0
15. Amend Sec.  160.151-21 by revising paragraphs (b), (h), (o), and 
(q) through (s) as follows:


Sec.  160.151-21   Equipment required for SOLAS A and SOLAS B 
inflatable liferafts.

* * * * *
    (b) Jackknife (IMO LSA Code, as amended by Resolution MSC.293(87), 
Chapter IV/4.1.5.1.2). Each folding knife must be a jackknife meeting 
the requirements in 46 CFR 199.175(b)(16).
* * * * *
    (h) First-aid kit (IMO LSA Code, as amended by Resolution 
MSC.293(87), Chapter IV/4.1.5.1.8). Each first-aid kit must meet the 
requirements in 46 CFR 199.175(b)(10).
* * * * *
    (o) Signalling mirror (IMO LSA Code, as amended by Resolution 
MSC.293(87), Chapter IV/4.1.5.1.15). Each signalling mirror must meet 
the requirements in 46 CFR 199.175(b)(19).
* * * * *
    (q) Fishing tackle (IMO LSA Code, as amended by Resolution 
MSC.293(87), Chapter IV/4.1.5.1.17). The fishing tackle must meet the 
requirements in 46 CFR 199.175(b)(11).
    (r) Food rations (IMO LSA Code, as amended by Resolution 
MSC.293(87), Chapter IV/4.1.5.1.18). The food rations must meet the 
requirements in 46 CFR 199.175(b)(22).
    (s) Drinking water (IMO LSA Code, as amended by Resolution 
MSC.293(87), Chapter IV/4.1.5.1.19). Emergency drinking water must meet 
the requirements in 46 CFR 199.175(b)(40). The desalting apparatus or 
reverse osmosis desalinator must be approved by the Commandant under 
approval series 160.058.
* * * * *

0
16. Amend Sec.  160.156-7 by revising paragraph (b)(22) to read as 
follows:


Sec.  160.156-7  Design, construction and performance of rescue boats 
and fast rescue boats.

* * * * *
    (b) * * *
    (22) Manual bilge pump. Each rescue boat that is not automatically 
self-bailing must be fitted with a manual bilge pump that meets the 
requirements in 46 CFR 199.175(b)(2), or an engine-powered bilge pump.
* * * * *

PART 169--SAILING SCHOOL VESSELS

0
17. The authority citation for part 169 is revised to read as follows:

    Authority: 33 U.S.C. 1321(j); 46 U.S.C. 3306, 6101; E.O. 11735, 
38 FR 21243, 3 CFR, 1971-1975 Comp., p. 793; DHS Delegation 00170.1, 
Revision No. 01.2; Sec.  169.117 also issued under the authority of 
44 U.S.C. 3507.

0
18. Amend Sec.  169.115 by revising paragraphs (a) and (e) to read as 
follows:

[[Page 68306]]

Sec.  169.115   Incorporation by reference.

    (a) Certain material is incorporated by reference into this part 
with the approval of the Director of the Federal Register in accordance 
with 5 U.S.C. 552(a) and 1 CFR part 51. All approved incorporation by 
reference (IBR) material is available for inspection at the Coast Guard 
Headquarters and at the National Archives and Records Administration 
(NARA). Contact the Coast Guard at: Commandant (CG-ENG-4), U.S. Coast 
Guard Stop 7509, 2703 Martin Luther King Jr. Avenue SE, Washington, DC 
20593-7509; email: [email protected]; website: www.dco.uscg.mil/CG-ENG-4/. For information on the availability of this material at NARA, 
email: [email protected]; website: www.archives.gov/federal-register/cfr/ibr-locations.html. The material may be obtained from the 
source(s) in the following paragraph(s) of this section.
* * * * *
    (e) The Textile Color Card Association of the United States, Inc. 
200 Madison Avenue, New York. (For availability of this material, 
contact the Coast Guard--see paragraph (a) of this section.)
    (1) Cable No. 70072, Standard Color Card of America, Ninth edition, 
1941 for Sec.  169.529(b).
    (2) [Reserved]
* * * * *

0
19. Revise Sec.  169.527 to read as follows:


Sec.  169.527   Required equipment for lifeboats.

    (a) All lifeboats must be equipped in accordance with table 1 to 46 
CFR 199.175 except as provided in paragraphs (b) and (c) of this 
section.
    (b) The following equipment must be carried in addition to the 
equipment required under 46 CFR 199.175:
    (1) Cover;
    (2) Ditty bag; and
    (3) Mast and sail.
    (c) If operating on protected waters, lifeboat equipment need only 
to consist of the following:
    (1) Boathook--(1);
    (2) Bucket--(1);
    (3) Fire extinguisher--(2) U.S. Coast Guard-approved Type B:C 
(motor propelled lifeboats only);
    (4) Hatch--(1);
    (5) Lifeline--(1);
    (6) Oar unit--(1);
    (7) Painter--(1);
    (8) Plug--(1);
    (9) Oarlock unit--(1); and
    (10) Toolkit (motor propelled lifeboats only).

0
20. Revise Sec.  169.529 to read as follows:


Sec.  169.529   Description of lifeboat equipment.

    (a) All lifeboat equipment must meet the requirements under 46 CFR 
199.175, except as provided in paragraph (b) of this section.
    (b) The following equipment, carried in addition to the equipment 
required under 46 CFR 199.175, must meet the following requirements:
    (1) Cover, protecting. The cover must be of highly visible color 
and capable of protecting the occupants against exposure. A cover is 
not required for fully enclosed lifeboats.
    (2) Ditty bag. The ditty bag must consist of a canvas bag or 
equivalent and must contain a sailmaker's palm, needles, sail twine, 
marline, and marlin spike, except that motor-propelled lifeboats need 
not carry a ditty bag.
    (3) Mast and sail. A unit, consisting of a standing lug sail 
together with the necessary spars and rigging, must be provided in 
accordance with table 1 to this section, except that motor-propelled 
lifeboats need not carry a mast or sails. The sails must be of good 
quality canvas, or other material acceptable to the Commandant, colored 
Indian Orange (Cable No. 70072, Standard Color Card of America; 
incorporated by reference, see Sec.  169.115). Rigging must consist of 
galvanized wire rope not less than \3/16\-inch in diameter. The mast 
and sail must be protected by a suitable cover.

[[Page 68307]]



                                                                                                        Table 1 to Sec.   169.529
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                  Length of lifeboat, feet                                                           Standing lug sail                                                                 Mast \1\                       Yard \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------------             -------------------------------------------------------------
                                                                            Luff and head     Leach length       Foot length     Clew to throat                 Commercial       Length                         Length
                                                                Area,          lengths     ------------------------------------------------------  Ounces per  designation ------------------  Diameter,  ------------------  Diameter,
                    Over--                       Not over--  square feet ------------------                                                       square yard     number                         inches                         inches
                                                                            Feet    Inches    Feet    Inches    Feet    Inches    Feet    Inches                              Feet    Inches                 Feet    Inches
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         17           58        5       11       12        1        8       10       10       10        14.35           10       11        2            3        6       11            2
17............................................           19           74        6        8       13        8       10        0       12        2        14.35           10       12        6            3        7        8            2
19............................................           21           93        7        5       15        1       11        2       13        8        14.35           10       13       10       3\1/2\        8        5       2\1/2\
21............................................           23          113        8        3       16       11       12        4       15        1        14.35           10       15        2       3\1/2\        9        3       2\1/2\
23............................................           25          135        9        0       18        6       13        6       16        6        14.35           10       16        6            4       10        0            3
25............................................           27          158        9        9       20        0       14        7       17       10        17.50            8       17       10            4       10        9            3
27............................................           29          181       10        5       21        5       15        7       19        1        17.50            8       19        2       4\1/2\       11        5       3\1/4\
29............................................           31          203       11        0       22        8       16        6       20        3        20.74            6       20        6       4\1/2\       12        0       3\1/4\
31 \2\........................................  ...........  ...........  .......  .......  .......  .......  .......  .......  .......  .......  ...........  ...........  .......  .......  ...........  .......  .......  ...........
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Mast lengths measured from heel to center of upper halyard sheave. Mast diameters measured at thwart. Mast and yard shall be of clear-grained spruce, fir, or equivalent.
\2\ Subject to special consideration.


[[Page 68308]]

PART 184--VESSEL CONTROL AND MISCELLANEOUS SYSTEMS AND EQUIPMENT

0
21. The authority citation for part 184 is revised to read as follows:

    Authority:  46 U.S.C. 2103, 3306; E.O. 12234, 45 FR 58801, 3 
CFR, 1980 Comp., p. 277; DHS Delegation 00170.1, Revision No. 01.2.

0
22. Revise Sec.  184.710 to read as follows:


Sec.  184.710  First-aid kits.

    A vessel must carry either a first-aid kit that meets the 
requirements in 46 CFR 199.175(b)(10) or a kit with equivalent contents 
and instructions. For equivalent kits, the contents must be stowed in a 
suitable, watertight container that is marked ``First-Aid Kit''. A 
first-aid kit must be easily visible and readily available to the crew.

PART 199--LIFESAVING SYSTEMS FOR CERTAIN INSPECTED VESSELS

0
23. The authority citation for part 199 is revised to read as follows:

    Authority: 46 U.S.C. 2103, 3103, 3306, and 3703; and DHS 
Delegation 00170.1, Revision No. 01.2, paragraph (II)(92)(b).

0
24. Revise Sec.  199.05 to read as follows:


Sec.  199.05  Incorporation by reference.

    Certain material is incorporated by reference in this part with the 
approval of the Director of the Federal Register under 5 U.S.C. 552(a) 
and 1 CFR part 51. All approved incorporation by reference (IBR) 
material is available for inspection at the Coast Guard Headquarters 
and at the National Archives and Records Administration (NARA). Contact 
the Coast Guard at: Commandant (CG-ENG-4), U.S. Coast Guard Stop 7509, 
2703 Martin Luther King Jr. Avenue SE, Washington, DC 20593-7509, email 
[email protected] or visit https://www.dco.uscg.mil/CG-ENG-4/. It 
is also available for inspection at the National Archives and Records 
Administration (NARA). For information on the availability of this 
material at NARA, email: [email protected] or go to 
www.archives.gov/federal-register/cfr/ibr-locations.html. The material 
may be obtained from the following source(s):
    (a) ASTM International (ASTM). 100 Barr Harbor Drive, P.O. Box 
C700, West Conshohocken, PA 19428-2959; phone: (610) 832 9500; email 
[email protected]; web: www.astm.org.
    (1) ASTM D 93-97, Standard Test Methods for Flash-Point by Pensky-
Martens Closed Cup Tester, approved July 10, 1997; IBR approved for 
Sec. Sec.  199.261; 199.290.
    (2) ASTM F1003-02 (Reapproved 2007), Standard Specification for 
Searchlights on Motor Lifeboats, approved May 1, 2007; IBR approved for 
Sec.  199.175.
    (3) ASTM F1014-02 (Reapproved 2007), Standard Specification for 
Flashlights on Vessels, approved May 1, 2007; IBR approved for Sec.  
199.175.
    (b) International Maritime Organization (IMO). Publications 
Section, 4 Albert Embankment, London, SE1 7SR, United Kingdom; phone: 
+44 (0)20 7735 7611; email: [email protected]; web: www.imo.org.
    (1) IBC Code, International Code for the Construction and Equipment 
of Ships Carrying Dangerous Chemicals in Bulk, 2016 edition, copyright 
2016, Chapter 2 Ship survival capability and location of cargo tanks; 
IBR approved for Sec.  199.280.
    (2) IBC Code, International Code for the Construction and Equipment 
of Ships Carrying Dangerous Chemicals in Bulk, 2016 edition, copyright 
2016, Chapter 17 Summary of minimum requirements; IBR approved for 
Sec.  199.30.
    (3) MSC Circular 699, Revised Guidelines for Passenger Safety 
Instructions, issued July 17, 1995, IBR approved for Sec.  199.217.
    (4) Resolution A.520(13), Code of Practice for the Evaluation, 
Testing and Acceptance of Prototype Novel Life-saving Appliances and 
Arrangements, adopted November 17, 1983; IBR approved for Sec.  199.40.
    (5) Resolution A.657(16), Instructions for Action in Survival 
Craft, adopted October 19, 1989; IBR approved for Sec.  199.175.
    (6) Resolution A.658(16), Use and Fitting of Retro-reflective 
Materials on Life-saving Appliances, adopted October 19, 1989; IBR 
approved for Sec. Sec.  199.70; 199.176.
    (7) Resolution A.760(18), Symbols Related to Life-saving Appliances 
and Arrangements, adopted November 4, 1993, IBR approved for Sec. Sec.  
199.70; 199.90.
    (8) Resolution MSC.370(93), Amendments to the International Code 
for the Construction and Equipment of Ships Carrying Liquefied Gases in 
Bulk, (IGC Code), adopted May 22, 2014; IBR approved for Sec. Sec.  
199.30; 199.280.
    (c) International Standard Organization (ISO). Chemin de Blandonnet 
8, CP 401, 1214 Vernier, Geneva, Switzerland; phone: +41 22 749 01 11; 
email: [email protected]; web: www.iso.org.
    (1) ISO 17339:2018(E), Ships and marine technology--Life saving and 
fire protection--Sea anchors for survival craft and rescue boats, 
Second edition, July 2018; IBR approved for Sec.  199.175.
    (2) ISO 18813:2006(E), Ships and marine technology--Survival 
equipment for survival craft and rescue boats, First edition, April 1, 
2006; IBR approved for Sec.  199.175.
    (3) ISO 25862:2009(E), Ships and marine technology--Marine magnetic 
compasses, binnacles and azimuth reading devices, First edition, May 
15, 2009; IBR approved for Sec.  199.175.


Sec.  199.30   [Amended]

0
25. Amend Sec.  199.30 in the definition for ``Toxic vapor or gas'' as 
follows:
0
a. Remove the text ``IBC Code'' and add, in its place, the text ``IBC 
Code; incorporated by reference, see Sec.  199.05''; and
0
b. Remove the text ``IGC Code'' and add, in its place, the text ``IGC 
Code; incorporated by reference, see Sec.  199.05''.

0
26. Amend Sec.  199.175 as follows:
0
a. In paragraph (a)(4), remove the word ``and'';
0
b. Redesignate paragraph (a)(5) as paragraph (a)(6);
0
c. Add new paragraph (a)(5);
0
d. In the introductory text to paragraph (b), remove the text ``table 
199.175 of this section'' and add, in its place, the text ``table 1 to 
this section'';
0
e. Revise the introductory text to paragraph (b)(2), paragraphs (b)(5), 
(6), (9) through (13), (16), (17), and (19), and (b)(27)(i);
0
f. In paragraph (b)(28)(i), remove the text ``F 1003'' and add, in its 
place, the text ``F1003'';
0
g. Revise paragraph (b)(40) introductory text;
0
h. Redesignate paragraphs (b)(40)(i) and (ii) as paragraphs 
(b)(40)(iii) and (iv);
0
i. Add new paragraphs (b)(40)(i) and (ii);
0
j. In newly-redesignated paragraph (b)(40)(iv), remove the words 
``reverse osmosis'' and add, in their place, the text ``reverse-
osmosis'';
0
k. Add paragraph (c) immediately before table 199.175;
0
l. Designate table 199.175 as table 1 to Sec.  199.175;
0
m. In newly-designated table 1 to Sec.  199.175, revise entries 5 and 
17; and
0
n. Add footnote 11 to the footnotes following table 1 to Sec.  199.175.

    The revisions and additions read as follows:


Sec.  199.175   Survival craft and rescue boat equipment.

    (a) * * *
    (5) Must be marked with either the Coast Guard approval number or 
the standard that the product meets, as applicable; and
* * * * *

[[Page 68309]]

    (b) * * *
    (2) Bilge pump. The bilge pump must meet the requirements in ISO 
18813:2006(E) paragraph 4.3 (incorporated by reference, see Sec.  
199.05) and must be installed in a ready-to-use condition.
* * * * *
    (5) Can opener. A can opener must meet the requirements in ISO 
18813:2006(E) paragraph 4.43 (incorporated by reference, see Sec.  
199.05). A can opener may be in a jackknife meeting the requirements in 
paragraph (b)(16) of this section.
    (6) Compass. The compass and its mounting arrangement must meet the 
requirements in ISO 18813:2006(E) paragraph 4.6 (incorporated by 
reference, see Sec.  199.05).
    (i) In a totally enclosed lifeboat, the compass must be permanently 
fitted at the steering position; in any other boat it must be provided 
with a binnacle, if necessary, to protect it from the weather, and with 
suitable mounting arrangements.
    (ii) The compass must be tested in accordance with the provisions 
in ISO 25862:2009(E) Annex H (incorporated by reference, see Sec.  
199.05) by an independent laboratory accepted by the Coast Guard in 
accordance with part 159, subpart 159.010, of this chapter.
* * * * *
    (9) Fire extinguisher. The fire extinguisher must be approved under 
approval series 162.028. The fire extinguisher must have a rating of a 
40-B:C. Two 10-B:C extinguishers may be carried in place of a 40-B:C 
extinguisher. Extinguishers with larger numerical ratings or multiple 
letter designations may be used instead.
    (10) First-aid kit. Each first-aid kit must meet the requirements 
in ISO 18813:2006(E) paragraph 4.12 (incorporated by reference, see 
Sec.  199.05).
    (i) A first-aid kit may be considered acceptable if it meets all of 
the requirements of ISO 18813:2006(E) paragraph 4.12, except that it 
does not contain the burn preparations. It must be clearly marked on 
the first-aid kit that it does not include the burn preparations.
    (ii) The active ingredients in medicinal products must conform to 
over-the-counter (OTC) drug regulations set out in 21 CFR part 330.
    (11) Fishing kit. The fishing kit must meet the requirements in ISO 
18813:2006(E) paragraph 4.13 (incorporated by reference, see Sec.  
199.05).
    (12) Flashlight. The flashlight must be a type I or type III that 
is constructed and marked in accordance with ASTM F1014 (incorporated 
by reference, see Sec.  199.05). One spare set of batteries and one 
spare bulb, stored in a watertight container, must be provided for each 
flashlight.
    (13) Hatchet. The hatchet must be suitable for cutting a rope 
towline or painter in an emergency and must not require assembly or 
unfolding.
    (i) The hatchet must be at least 14 inches in length and have a 
cutting edge of approximately 3\1/4\ inches in length, with a hardened 
steel or equivalent alloy head.
    (ii) The hatchet must be provided a lanyard at least 3 feet in 
length.
    (iii) The hatchet must be stowed in brackets near the release 
mechanism and, if more than one hatchet is carried, the hatchets must 
be stowed at opposite ends of the boat.
* * * * *
    (16) Jackknife. The jackknife must consist of a one-bladed knife 
fitted with a can opener and attached to the boat by its lanyard. The 
jackknife must meet the requirements in ISO 18813:2006(E) paragraph 
4.19 (incorporated by reference, see Sec.  199.05).
    (17) Knife. The knife must be of the non-folding type with a 
buoyant handle as follows:
    (i) The knife for a rigid liferaft must be secured to the raft by a 
lanyard and stowed in a pocket on the exterior of the canopy near the 
point where the painter is attached to the liferaft. If an approved 
jackknife is substituted for the second knife required on a liferaft 
equipped for 13 or more persons, the jackknife must also be secured to 
the liferaft by a lanyard.
    (ii) The knife in an inflatable or rigid-inflatable rescue boat 
must be of a type designed to minimize the possibility of damage to the 
fabric portions of the hull.
    (iii) Any knife may be replaced with a jackknife meeting the 
requirements in paragraph (b)(16) of this section.
* * * * *
    (19) Mirror. The signalling mirror must meet the requirements in 
ISO 18813:2006(E) paragraph 4.23 (incorporated by reference, see Sec.  
199.05).
* * * * *
    (27) * * *
    (i) The sea anchor for a lifeboat, rescue boat, and rigid liferaft 
must meet the requirements in ISO 17339:2018(E) (incorporated by 
reference, see Sec.  199.05).
* * * * *
    (40) Water. The water must meet the requirements in ISO 
18813:2006(E) paragraph 4.46 (incorporated by reference, see Sec.  
199.05).
    (i) The water must meet the U.S. Public Health Service ``Drinking 
Water Standards'' in 40 CFR part 141 to suitably protect the container 
against corrosion. After treatment and packing, the water must be free 
from organic matter, sediment, and odor. It must have a pH between 7.0 
and 9.0 as determined by means of a standard pH meter using glass 
electrodes. Water quality must be verified by the local municipality or 
independent laboratory accepted by the Coast Guard in accordance with 
part 159, subpart 159.010, of this chapter.
    (ii) Containers of emergency drinking water must be tested in 
accordance with the provisions in ISO 18813:2006(E) by an independent 
laboratory accepted by the Coast Guard in accordance with part 159, 
subpart 159.010, of this chapter.
* * * * *
    (c) Any Coast Guard-approved equipment on board before December 14, 
2022 may remain on board as long as it remains in good and serviceable 
condition.

                                                   Table 1 to Sec.   199.175--Survival Craft Equipment
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       International voyage                         Short international voyage
                                                         -----------------------------------------------------------------------------------------------
             Item No.                       Item                               Rigid                                           Rigid
                                                             Lifeboat        liferaft       Rescue boat      Lifeboat        liferaft       Rescue boat
                                                                          (SOLAS A pack)                                  (SOLAS B pack)
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
5.................................  Can opener \11\.....               3               3  ..............               3  ..............  ..............
 

[[Page 68310]]

 
                                                                      * * * * * * *
17................................  Knife \1\ \4\ \11\..               1               1               1               1               1               1
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
\1\ Each liferaft equipped for 13 persons or more must carry two of these items.
* * * * *
\4\ A hatchet counts towards this requirement in rigid rescue boats.
* * * * *
\11\ One (1) jackknife may replace one (1) can opener and one (1) knife.

Sec.  199.280   [Amended]

0
27. Amend Sec.  199.280 in paragraphs (e)(2) and (3) by removing the 
words ``in Bulk'' and adding, in their place, the text ``in Bulk 
(incorporated by reference, see Sec.  199.05)''.

    Dated: October 26, 2022.
W.R. Arguin,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Prevention 
Policy.
[FR Doc. 2022-23666 Filed 11-10-22; 8:45 am]
BILLING CODE 9110-04-P


