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Federal Register / Vol. 86, No. 47 / Friday, March 12, 2021 / Rules and Regulations adjustment will increase total compensation by $5,506 per pilot, and
the total revenue needed by $297,339, when accounting for all 54 pilots.

TABLE 45CHANGE IN REVENUE RESULTING FROM THE CHANGE TO INFLATION OF PILOT COMPENSATION CALCULATION
IN STEP 4
2020 Target Compensation
Adjusted 2020 Compensation $367,085 1.015
Difference between Adjusted Target 2020 Compensation and Target 2020 Compensation $372,591$367,085
Increase in total Revenue for 54 Pilots $5,506 54

The addition of two pilots to full registered status accounts for $746,837
of the increase in needed revenue. As
shown in Table 46, to avoid double counting, this value excludes the change in revenue resulting from the change to
$367,085
372,591
5,506
297,339

adjust 2020 pilotage compensation to account for the difference between actual and predicted inflation.

TABLE 46CHANGE IN REVENUE RESULTING FROM ADDING TWO ADDITIONAL PILOTS
2021 Target Compensation
Total Number of New Pilots
Total Cost of new Pilots $378,925 2
Difference between Adjusted Target 2020 Compensation and Target 2020 Compensation $372,591$367,085
Increase in total Revenue for 2 Pilots $5,506 2
Net Increase in total Revenue 2 Pilots $757,850$11,013

Finally, the remainder of the increase, $329,354, is the result of increasing
compensation for the other 52 pilots to account for future inflation of 1.7

$378,925
2 $757,850
$5,506
$11,013
$746,837

percent in 2021. This will increase total compensation by $6,334 per pilot.

TABLE 47 CHANGE IN REVENUE RESULTING FROM INFLATING 2020 COMPENSATION TO 2021
Adjusted 2020 Compensation
2021 Target Compensation $372,591 1.017
Difference between Target 2020 Compensation and Target 2020 Compensation $378,925$372,591
Increase in total Revenue for 52 Pilots $6,334 52

Table 48 presents the percentage change in revenue by area and revenue-

$372,591
378,925
6,334
329,354

component, excluding surcharges, as they are applied at the district level.68

TABLE 48DIFFERENCE IN REVENUE BY COMPONENT AND AREA
Adjusted operating expenses Area
District One: Designated District One: Undesignated
District Two: Undesignated
District Two: Designated District Three: Undesignated
District Three: Designated

2020

2021

$1,573,286

$2,328,981

1,048,857

1,502,239

1,019,371
1,504,635

1,003,961
1,540,146

2,336,354
628,182

2021

32%

$3,670,850

$3,789,250

3%

$206,095

$207,255

30%

2,569,595

2,652,475

3%

142,205

140,741

2%
2%

2,936,680
2,569,595

3,031,400
2,652,475

3%
3%

155,473
160,117

136,698
142,025

1,947,484

20%

5,873,360

6,820,650

14%

322,642

554,039

13%

1,468,340

1,515,700

3%

82,393

This rule will allow the Coast Guard to meet requirements in 46 U.S.C. 9303
to review the rates for pilotage services on the Great Lakes. The rate changes will promote safe, efficient, and reliable pilotage service on the Great Lakes by 1 ensuring that rates cover an associations operating expenses; 2
providing fair pilot compensation, adequate training, and sufficient rest periods for pilots; and 3 ensuring pilot 68 The 2020 projected revenues are from the Great Lakes Pilotage Rates2020 Annual Review and
17:56 Mar 11, 2021

Working capital fund
Percentage change
2020

Benefits
VerDate Sep<11>2014

Total target pilot compensation
Percentage change
Jkt 253001

2020

2021

associations produce enough revenue to fund future improvements. The rate changes will also help recruit and retain pilots, which will ensure a sufficient number of pilots to meet peak shipping demand, helping to reduce delays caused by pilot shortages.
B. Small Entities Under the Regulatory Flexibility Act, 5 U.S.C. 601612, we have considered whether this rule will have a significant Revisions to Methodology final rule 85 FR 20088

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Total revenue needed
Percentage change
Percentage change
2020

2021

1%

$5,450,231

$6,325,486

14%

1%

3,760,657

4,295,455

12%

14%
13%

4,111,524
4,234,347

4,172,059
4,334,646

1%
2%

297,021

9%

8,532,356

9,065,155

6%

70,112

18%

2,178,915

2,139,851

2%

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.
For this rule, the Coast Guard reviewed recent company size and ownership data for the vessels identified in the GLPMS, and we reviewed Tables 8, 20, and 32. The 2021 projected revenues are from Tables 9, 21, and 33 of this rule.

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