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68135

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Federal Register / Vol. 86, No. 228 / Wednesday, December 1, 2021 / Rules and Regulations U.S. navigable waters or U.S. EEZ. The revisions also improve the Coast Guards ability to establish compliance with COFR regulations by more effectively ensuring the responsible party is able to pay its liability and mitigate risks to the OSLTF. For example, if a vessel is sold while using a place subject to U.S. jurisdiction, the new responsible parties become immediately subject to the COFR
program. These changes are to ensure that, while the Coast Guard still has regulatory authority over a responsible party and the financial assurances of the guarantor, the Coast Guard receives information relevant to continued compliance before problems arise.
However, enforcing compliance with the COFR programs requirements depends on the Coast Guard knowing about the vessel transfer. The regulatory revisions ensure that the Coast Guard receives this information and to mitigate the risk of uninsured responsible parties and derelict vessels.

is currently contained on the COFR
form and reflects a current and important NPFC business practice.
Process for establishing and maintaining acceptability of COFR
insurance guarantors: The rule moves the current process for establishing and maintaining acceptability of COFR
insurance guarantors into the regulations to make it more transparent to the public. The Coast Guards longstanding business practice under the existing COFR regulations for determining the acceptability of guarantors is the basis of the procedures set forth in the rule. The rule also provides a process through which a COFR operator may provide new evidence of financial responsibility and obtain approval or continuation of the COFR where the Coast Guard disapproves a guarantor for example, due to guarantor fraud or financial failure. The provision applies to pending Applications and following the issuance of a COFR.

Discussion of Regulatory Benefit 3
How to apply vessel gross tonnages:
This rule updates and simplifies the provisions respecting how to apply gross tonnage measurement methods to reflect changes in the law since OPA 90
was first enacted. This rule is consistent with the Coast Guards tonnage regulation at 46 CFR part 69 Tonnage Regulations Amendments 81 FR
18701, March 31, 2016. Hence the update on how gross tonnage measurement is performed simplifies an administrative burden on the COFR
Operator.
Removal of requirement to pay fees before issuance of a COFR: The rule allows the COFR Operator to pay the COFR Application and Certification fees up to 21 days after submitting their COFR Application. This adds flexibility and convenience for COFR Operators, especially if they are underway and want to enter U.S. navigable waters or U.S. EEZ.
Moving surety bond method to other methods for establishing and maintaining evidence of financial responsibility: The rule no longer specifically discusses the surety bond method in the regulations because it is rarely, if ever, used. However, the surety bond method is still available under the other methods provision in the rule.
Clarification on continuation of guarantors liability and requirement to provide coverage for 30 days after cancellation of guaranty: The rule explains that the guarantor continues to be liable and must provide coverage for 30 days following NPFC receipt of a notice of cancellation. This requirement
Discussion of Regulatory Benefit 4

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These regulations concern management of two pollution funds the Offshore Oil Pollution Compensation Fund and the FWPCA
Section 311k Fund. These provisions are no longer authorized. On November 1, 2011, the Coast Guard published a notice of inquiry 76 FR 67385
soliciting public comment on removing 33 CFR part 135 and we received no adverse comments. This aspect of the rulemaking is necessary to remove unauthorized regulatory requirements and to eliminate potential confusion to the public.
B. Small Entities Under the Regulatory Flexibility Act, 5 U.S.C. 601612, 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.
An Initial Regulatory Flexibility Analysis IRFA was developed in the NPRM 85 FR 28802. There were no public comments received on the IRFA.
The IRFA determined that there are two potential direct costs to small entities that result from this rule:
Regulatory Cost 1: Require Tank Vessels Greater than 100 Gross Tons to 300 Gross Tons to Establish and Maintain Evidence of Financial Responsibility Statutory Requirement.

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Regulatory Cost 2: Require Additional Information from COFR
Operators and Guarantors Discretionary Requirement.
The number of small entities affected by Regulatory Cost 1 of the rule and the respective impact on their annual revenue was determined in the IRFA
and is summarized in Table 4 below.

TABLE 4ECONOMIC IMPACT TO
SMALL
ENTITIESREGULATORY
COST 1
Percent of annual revenue 1% to 2% <1%

Number of small entities
Percent of small entities
0 117

0
100

The number of small entities affected by Regulatory Cost 2 of the rule and the respective impact on their annual revenue was determined in the IRFA
and is summarized in Table 5 below.

TABLE 5ECONOMIC IMPACT TO
SMALL
ENTITIESREGULATORY
COST 2
Percent of annual revenue 1% to 2% <1%

Number of small entities
Percent of small entities
0 652

0
100

Therefore, the Coast Guard certifies under 5 U.S.C. 605b that this rule will not have a significant economic impact on a substantial number of small entities.
C. Assistance for Small Entities Under section 213a 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 agencys responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1
888REGFAIR 18887343247.

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