Federal Register - December 1, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 228 / Wednesday, December 1, 2021 / Rules and Regulations TABLE 2SUMMARY OF REGULATORY AMENDMENT IMPACTS
Regulatory cost
Require financial responsibility for tank vessels greater than 100 gross tons but less than or equal to 300 gross tons to establish and maintain evidence of financial responsibility Statutory:
Application and certification costs
COFR premium costs
Require Additional Information from the COFR Operator and guarantor Discretionary:
Reporting of gross tonnage measurement systems used and submission of a copy of the tonnage certifying document, upon request.
Electronic submissions
Reporting of reason for termination of guaranty by a guarantor
Reporting vessel name change and increased reporting on location of vessel when there is a change in ownership on date of change.
Conform regulations to current Practice Discretionary:
How to apply vessel gross tonnages
Removal of requirement to pay fees before issuance of a COFR
Moving Surety Bond method to other methods for establishing and maintaining evidence of financial responsibility.
Clarification on continuation of guarantors liability and requirement to provide coverage for 30 days after cancellation of guaranty.
Process for establishing and maintaining acceptability of COFR insurance guarantors
Removal of 33 CFR part 135 and subpart D of 33 CFR part 153 Discretionary:
Removal of 33 CFR part 135
Removal of subpart D of 33 CFR part 153
3. Regulatory Costs There are two regulatory costs identified for this rule:
Regulatory Cost 1: Require the additional tank vessels greater than 100
gross tons but less than or equal to 300
gross tons to establish and maintain evidence of financial responsibility statutory requirement.
Regulatory Cost 2: Require additional information from the COFR
Operator and guarantor discretionary requirement.
Discussion of Regulatory Cost 1
The rule requires tank vessels greater than 100 gross tons but less than or equal to 300 gross tons to establish and maintain evidence of financial
responsibility.10 These vessels are required to have COFRs, which results in two types of costs:
Application and certification costs;
and COFR premium costs.
Application and Certification Costs:
In the first year of the analysis period, the COFR Operator is required to pay an Application fee of $200 and a Certification fee of $100 for each vessel requiring a COFR. A new Certification fee is required every 3 years to renew the COFR.
COFR Premium Costs: The additional operators of tank vessels greater than 100 gross tons but less than or equal to 300 gross tons have to establish and maintain evidence of financial
Regulatory benefit
Yes Yes
Yes Yes
Yes
Yes
No 7
Yes Yes
Yes Yes Yes
No No No
Yes Yes Yes
No
Yes
No
Yes
No 8
No 9
Yes Yes
responsibility using one of these several methods: Insurance, Self-insurance, or Financial Guaranty.11
Affected Population: According to the Coast Guards Marine Information for Safety and Law Enforcement MISLE
database, there are an average of 465
tank vessels using U.S. navigable waters or U.S. EEZ from 20162020 that are greater than 100 gross tons but less than or equal to 300 gross tons. Table 3
shows the number of tank vessels greater than 100 gross tons but less than or equal to 300 gross tons per year 20162020. Note the data used for the NPRM was 20142018. Hence the final rule has updated the data period to most current data.
TABLE 3NUMBER OF TANK VESSELS GREATER THAN 100 GROSS TONS BUT LESS THAN OR EQUAL TO 300 GROSS
TONS
Number of vessels
Year
lotter on DSK11XQN23PROD with RULES1
2016
2017
2018
2019
2020
477
474
474
449
449
Average 20162020
465
7 Electronic
submissions creates cost savings.
of superseded regulatory requirements have no cost. The OCSLA Fund was subsumed by the Oil Spill Liability Trust Fund.
8 Removal
VerDate Sep<11>2014
16:06 Nov 30, 2021
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9 Removal of superseded regulatory requirements have no cost. The 311k Fund was subsumed by the Oil Spill Liability Trust Fund.
10 Regulatory Cost 1 does not include vessels greater than 300 gross tons that are already required to have a COFR.
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11 Historically, the surety bond method has been used in a very few instances. This rule moves this method to the other methods category of financial responsibility under 138.110f.
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