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Federal Register / Vol. 86, No. 172 / Thursday, September 9, 2021 / Proposed Rules TABLE 10SUMMARY OF BENEFITS, COSTS, AND NET BENEFITS
$ millions Undiscounted Year
Discounted
Benefits Costs
Net benefits
Net benefits 3 percent
Net benefits 7 percent
1
2
3
4
5
6
7
8
9
10

$7.1
72.3
73.0
74.1
75.4
76.6
78.1
79.2
80.5
81.9

$56.7
12.3
12.3
12.3
12.3
12.3
12.3
12.3
12.3
12.3

$49.6
60.0
60.7
61.8
63.1
64.3
65.8
66.9
68.2
69.6

$48.2
56.6
55.5
54.9
54.4
53.9
53.5
52.8
52.3
51.8

$46.4
52.4
49.5
47.1
45.0
42.8
41.0
38.9
37.1
35.4

Total

698.2

167.4

530.8

437.5

343.0

Annualized

69.8

16.7

53.1

49.8

45.6

Values in millions. Full precision of numbers calculated and summed, but independent rounding for display purposes reflects subtotals but not the underlying calculations.

Break-Even Point Analysis OMB Circular A4 recommends use of a break-even or threshold analysis when there are qualitative benefits or issues of uncertainty related to the cost and benefit estimates. As discussed above, MSHAs estimates of the benefits of the rule are based on the projected reduction in the number of fatalities and injuries. The success of the proposed rule in reducing fatal and nonfatal injuries can be considered in terms of the resulting monetized benefit. A
break-even point is when net benefits monetized benefits minus costs equal zero. According to the break-even calculations for this proposal, even if the fatalities and injuries are not reduced as forecasted, the reduction of fatal and nonfatal injuries would have a positive net benefit as long as those injuries are reduced by more than 27.1
percent; at 27.1 percent, the net benefits at a 7 percent discount rate would equal zero.

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E. Request for Comments Please provide data or information that would be useful to MSHA as the Agency evaluates the costs and benefits of this proposal. MSHA recognizes that mine operations are diverse with varying mining methods, mining conditions and operations, types of mobile equipment, mined commodities, and mine sizes. MSHA seeks data and information that would allow the Agency to develop estimates that might better reflect these differing conditions and further evaluate the economic feasibility of this proposal. MSHA
requests comments on innovative technologies and/or new and
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developing technologies that could enhance the benefits of the proposal.
IV. Feasibility A. Technological Feasibility MSHA concludes that the proposal would be technologically feasible because it would require mine operators to develop and implement written safety programs based on an assessment of risk in their mines and use existing technology or methods to enhance safety. Therefore, there are no technological issues raised by the proposal.
B. Economic Feasibility
businesses, small governmental jurisdictions, and small organizations.
Pursuant to the Regulatory Flexibility Act RFA of 1980, as amended by the Small Business Regulatory Enforcement Fairness Act SBREFA, MSHA analyzed the impact of the proposed rule on small entities. Based on that analysis, MSHA
believes that this proposed rule would not have a significant economic impact on a substantial number of small entities. The Agency, therefore, is not required to develop an initial regulatory flexibility analysis. The factual basis for this proposed certification is presented below.

V. Regulatory Flexibility Analysis RFA and Small Business Regulatory Enforcement Fairness Act SBREFA
and Executive Order 13272: Proper Consideration of Small Entities in Agency Rulemaking
A. Definition of a Small Mine Under the RFA, in analyzing the impact of a rule on small entities, MSHA must use the Small Business Administration SBAs definition for a small entity, or after consultation with the SBA Office of Advocacy, establish an alternative definition for the mining industry by publishing that definition in the Federal Register for notice and comment.
The SBA uses North American Industry Classification System NAICS
codes, generally at the 6-digit NAICS
level, to set thresholds for small business sizes for each industry. See Table 11 for SBA thresholds for each relevant NAICS code. The SBA size standard tables and methodology are available at https www.sba.gov/
contracting/getting-started-contractor/
make-sure-you-meet-sba-size-standards/
summary-size-standards-industrysector.

MSHA has reviewed the proposed rule to assess and take appropriate account of its potential impact on small
B. Factual Basis for Certification The SBA guidance recommends, as a first step, a threshold analysis. MSHA

MSHA has traditionally used a revenue screening testi.e., whether the yearly impacts of a regulation are less than one percent of revenuesto establish presumptively that the regulation is economically feasible for the mining community. MSHA projects that the proposal would have an annualized cost of $17 million at a 7
percent discount rate over 10 years, while the mining industry has estimated annual revenues of $109.4 billion. The cost of the proposal would be much less than 1 percent of revenues. Therefore, MSHA concludes that the proposed rule would be economically feasible for the mining industry.

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