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Federal Register / Vol. 86, No. 152 / Wednesday, August 11, 2021 / Rules and Regulations
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TABLE 9SHIPPING AND HANDLING COSTS BY FACILITY AND DOCUMENT TYPEContinued Final Rule and NPRM
Document type
Handling labor costs
Shipping cost
Total
MTR Facility Documents
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Operations Manuals one 0.5-inch binder for MTR facilities
Operations Manuals two 0.5-inch binders for MTR facilities
Amendments one or two 5-page amendments for MTR facilities.

The final component of the cost savings estimate to industry is the quantity of manuals and amendments that facilities are sending to the COTP.
LNG and LHG facilities are currently required to submit two copies of their Operations Manuals and Emergency Manuals and amendments to the COTP, and MTR facilities are currently required to submit two copies of their Operations Manuals and amendments.80 The final rule permits facilities to submit their documents in either print or electronic format. Facility operators submitting electronically will save the cost of assembling and shipping two copies of their documents.
The final rule also permits those facility operators submitting printed documents to submit one copy instead of two. Hence, those facilities will save the costs associated with producing and mailing one copy of their manuals.
Coast Guard SMEs estimated that 90
percent of LNG/LHG facilities will submit their manuals and amendments electronically, and 75 percent of MTR
facilities will submit their manuals and amendments electronically. The reason for this difference is that LNG/LHG
facilities are much more likely to be owned by large multi-national conglomerates than MTR facilities.
LNG/LHG facilities are, therefore, more likely to fully utilize modern IT systems and be able to submit their documents electronically.
During the review process of the initially submitted documents, the COTP may reject submitted manuals and amendments due to inadequacies in meeting the regulatory requirements put forth in 33 CFR part 127 for LNG and LHG facilities, or part 154 for MTR
facilities. Coast Guard SMEs estimated that 30 percent of the total number of all manuals not amendments sent by facilities are inadequate and must be returned for corrections. For amendments, Coast Guard SMEs estimated that the rejection rate is 15
percent. The reason for the lower 80 Currently, two copies must be sent in initially, but if copies of manuals or amendments need to be sent in again because they were found inadequate by the Coast Guard, only one copy needs to be sent.

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$9.25 NPRM: $9.56
$10.19 NPRM: $10.11
$8.23 NPRM: $8.88

$8.55 NPRM: $8.00
$8.55 NPRM: $8.00
$7.48 NPRM: $7.00

rejection rate is that amendments are based on previously approved documents and are shorter, having a lower chance of containing inadequacies.
Under current regulations, facilities send back to the COTP two copies, in printed format, to address an inadequacy. Under this rule, facilities will instead, at their discretion, respond to an inadequacy in either electronic or printed format. If they respond in printed format, they will send only one copy instead of two and will save the costs associated with producing and mailing one copy of the manual or amendment. If they submit in electronic format, they will save the costs associated with producing and mailing two copies of the document.
In summary, the cost savings for the private sector stem from the following:
LNG/LHG facilities initially printing and mailing fewer printed Operations Manuals and Emergency Manuals 0.5-inch binders and amendments 5 pages to the Coast Guard.
LNG/LHG facilities printing and mailing fewer printed Operations Manuals and Emergency Manuals 0.5inch binders and amendments 5 pages that have to be resubmitted to the COTP.
LNG/LHG facilities storing fewer printed Operations Manuals and Emergency Manuals 0.5-inch binders and amendments 5 pages at marine transfer areas.
MTR facilities initially printing and mailing fewer printed Operations Manuals 0.5-inch binders and amendments 5 pages to the COTP.
MTR facilities printing and mailing fewer printed Operations Manuals 0.5inch binders and amendments that have to be resubmitted to the COTP.
MTR facilities storing fewer printed Operations Manuals 0.5-inch binders and amendments 5 pages at marine transfer areas.
We calculated the cost savings by taking the annual population of facilities, multiplied by the number of manuals or amendments per facility, multiplied by the probability of the facility of transitioning to electronic
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$17.80 NPRM: $17.56.
$18.74 NPRM: $18.11.
$15.71 NPRM: $15.88.

submissions, multiplied by production and shipping costs. The cost savings from the changes are the same each year. Tables 10 through 17 show the annual cost savings to facilities by activity.
We predicted that 90 percent of LNG/
LHG facilities will convert their Operations Manuals and Emergency Manuals to an electronic format. The remaining 10 percent of LNG/LHG
facilities will still experience some cost savings since they will only be required to assemble one copy of their manuals to initially mail to the COTP instead of the current two. Because these 10
percent of LNG/LHG facilities will continue to send the same number of corrected printed manuals back to the COTP, they will not experience cost savings with respect to these. The cost elements to produce manuals and amendments were previously shown in tables 7 and 8.
Table 10 shows the administrative cost savings to LNG/LHG facilities from producing fewer Operations Manuals and Emergency Manuals that are mailed to the Coast Guard. A brief summary of the components of that table follows.
The term Instances of Documents Forecast to be submitted is an annual average of the instances of manuals and amendments that have been submitted over the past 10 years, based on MISLE
data. A more thorough discussion of these numbers can be found in the Affected Population section of this preamble.
The Expected Rate of Electronic Documents Submitted is the percentage of documents expected to be submitted in electronic format instead of print. As stated previously, we based the terms on Coast Guard SME input.
The 27 percent figure reflects the SME
estimate that 90 percent of manuals will be submitted in electronic format and that 30 percent of all manuals submitted to the COTP are found inadequate.81 For this 27 percent of documents, there will be a cost savings associated with the cost of producing and mailing two printed manuals. Similarly, the 3
81 90 percent multiplied by 30 percent equals 27
percent.

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