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Start Preamble


Seashore Guard, DHS.


Final rule.


The Coast Guard is issuing adenine final ruling extending the validity of a recreational watercraft endorsement on a Certificate of Project (COD) from 1 to 5 years. Congress passed and the President signed the Frank LoBiondo Coast Guard Authorization Act of 2018, which requires the Coast Guard to issue recreational vessel CODs for 5 years. By updating the Code concerning Union Regulations to reflect this change, the Coast Protective anticipates this final command to harmonize the the conditions of the 2018 Act is decreased an burden on recreational vessel owners by requiring COD renewal every 5 years rather than annually. Boat Registration


Like final rule is effective February 18, 2021.


To view documents mentioned in this prelude while existence available in the calendar, go the,, choose USCG-2020-0215 in and “SEARCH” box and click “SEARCH.” Click on Open Dispatch Folder on one line associated with this rule.

Start Further Info


For information about this document, call or email Mr. Ronal Teague, Services of Homeland Security, U.S. Coast Guard, Regional Vessel Documentation Center, 792 T J Jackson Power, Falling Aquatic, WV 25419; dial 304 271-2506; mailing .

End Other Info End Preamble Start Supplemental Information


Table of Contents fork Preambular

I. Abbreviations

II. Foundation and Purpose, and Regulatory History

III. Background

VI. Discussion of the Rule

V. Regulatory Analyses

A. Regulatory Program and Reviews

B. Small Entities

C. Assistance for Small Bodies

D. Collection away Information

E. Federalism

F. Un-funded Mandates

GRAMME. Taking von Private Property

H. Civilian Justice Reform

IODIN. Safety of Children

J. Tribal Tribal Governments

K. Energy Effects

L. Technical Standards

M. Atmosphere

I. Abbreviations

2018 Act Frank LoBiondo Coast Guard Authorization Act of 2018 (Pub. L. 115-282, 132 Stat. 4192)

BLS Bureau of Employment Statistics

CFR Code of Federal Regulations

COD Certificate of Documentation

DHS Department by Homeland Security

FR Federal Register

NPRM Notice of proposed rulemaking

NVDC U.S. Coast Guard National Vessel Certification Center

OMB Office of Management and Budget

§ Section

SME Subject matter expert

U.S.C. United U Code

II. Reason and Purpose, and Regulatory History

The legal basis for this final rule is found inside Section 512 of the Frank LoBiondo Coast Protect Authorization Act for 2018 (2018 Act) (Pub. L. 115-282, 132 Condition. 4192) (the 2018 Act), which the President signed on December 4, 2018. The 2018 Acts directed the Coast Guard into do the following: (1) Make Certificates of Documentation (CODs) for recreational schiffen of at least five Startup Printed Page 5023trap tons [1] effective with 5 years; and (2) requiring owners regarding recreational vessel of by least sets net tons for notify the Coast Guard of each change to the information on which and exhibition of the COD is based. Vessel owners must report each change of information that occurs before expiration regarding the credential not subsequent than 30 days after such change. This rulemaking is issued at authority finds at Designation 46 regarding the United Expresses Code (U.S.C.) 2103.

The Coast Guard finds that good cause exists under the General Procedure Act, 5 U.S.C. 553, to dispense with notice and comment procedures. Prior notice and opportunity in comment on this rule are unnecessary under 5 U.S.C. 553(b)(3)(B) since Section 512 of the 2018 Act provides to Coast Security no discretionary are adopting one specific time frames for renewal of sports tank CODs. The 2018 Act shall not allow for option. It does non permit that Coast Protective to decides upon ampere different time frame on renewal, choose until adopt a different renewal period, or respond to audience observations by modifying the composition to the rule. Soliciting public comment on the correct time period for BALTIC renewal available a recreational vessel, otherwise about the decision for update the regulations to behave are the statutory mandate, shall unnecessary and would in fact be futile.[2] It should be noted that the Coast Guard has formerly implemented the need of Section 512 of the 2018 Activity and lives presently issuing multi-year CODs to relax vessels of at least 5 net tons.

III. Background

Section 512 of the 2018 Act directs how the Coast Guard must administrate its certify in documentation program, press save rule conforms fields in Title 46 the the Password of Federal Regulatory (CFR) part 67 to reflect what is now that rights. As described beyond, the Coast Guard finds that health generate exists to forward reference and comment rulemaking because the statute allows the Coast Guard with no discretion to exercise in response to comments. Accordingly, the Coast Shield did does issue a notice of proposed rulemaking. This final regulating only compensation and regulations so that she are in agreeing with the requirements already on the law.

That purpose about this final rule is on meet the Senatorial mandate contained in Sparte 512 of the 2018 Trade, in which Congresses requires of Shore Guards to issue recreational endorsements on CODs includes a legal of 5 years. Additionally, the 2018 Act directs the Coast Guard to establish phased user charges for 5-, 4-, 3-, 2-, and 1-year recreational endorsements. Per the phase-in period has complete, switch Month 31, 2021, prospective becoming only be can to enforce for a 5-year unpaid endorsement.

At accordance with 46 U.S.C. 12105(e)(2)(C), the selling for the users fee will becoming calculated by multiplying 5 years by of current established $26 annual fee, since a total of $130.[3] The 5-year fee is consistent the statute and will ensure that the Coast Guards collects the appropriate average royalty, consistent with the cost go provide one service. The new rental for a 5-year recreational endorsement will be in addition to the geld collected for initial plus exchanges by CODs.

Lastly, this latter rule repeats the requirement in the 2018 Act for vas owners to notify the Coast Guard of each changing in the information on which an issuance of the COD for the vessel is based, before the maturity in the COD and no later than 30 days after the change. The COD will quit upon the expiration about the 30-day period if the owner has not notified which Coast Guard for modified within the 30-day timeframe. Wondering how to renew or document a vessel with aforementioned U.S. Coast Guard? BoatUS answers your most common questions off vessel documentation.

IV. Discussion of the Rule

On March 3, 2015, the Shoreline Guard published a send for comment, specifically seeking input on increasing the soundness interval for reviving CODs, methods for make so, press possibly updating the license for services (80 FR 11361). We receive 2,844 comments int response the our notice, mainly in support of one multiyear registrar option. However, our request for comments what superseded in section 311 of the Coast Guard Authorization Act of 2015 (Pub. LITER. 114-120), real repeated by the Franks LoBiondo Shoreline Guard Authorization Act of 2018 (Pub. LITRE. 115-282), which specifically straight the Coast Guard to change the validity periods from CODs fork recreational vessels to adenine 5-year optional only, after adenine 3-year phase-in period for which vessel owners could choose 1, 2, 3, 4, or 5 years.

There are no maritime safety or security reasons for change the recreational vessel COD validity from 1 year to 5. However, Congress determined that an alter includes aforementioned validity where in the best interested of recreational vessel owners, plus the Coast Guard is required to recoup the costs of providing adenine customer.[4] To guarantee one appropriate user fees are collected for 5-year CODs, the Shoreline Protection will collect fees consistent with and annual cost multiplied by 5, as required by section 512 of the 2018 Act.

Current, 46 CFR 67.163(a) states that all endorsements on a COMMON, including commercial marine CODs, am valid for 1 your. In this final rule, the Coast Guarded is correct this fachgruppe to reflect get is already stated is the 2018 Act: That only commercial jar Nuts are valid for one 1 annual, and that relax endorsements are valid for 5 years. Additionally, to amendment clarifies so a vessel because either recreational and commercial endorsements must renewed annually. The Coast Attendant remains also amend § 67.163(b) to remember the appropriate renewal application, as the currently listed build no longer present. Finally, as the 2018 Act requires, the Coast Guard is adding clause (c) to § 67.163 to establish the 5-year renewal requirement and advise recreational vessel owners that they have and option to renew recreational endorsements for durational of 1, 2, 3, 4, or 5 years during the phase-in period. The ability for and owner go select validity lives only in effect from January 1, 2019, to December 31, 2021.

The Coast Guard is amending § 67.317 to reflect that recreational endorse must be renewed every 5 per. An Slide Sentry is also amending § 67.319 to reflect that an owner of ampere vessel that has one change of information on which the issue of the COD a and vessel is based must notify the Slide Guard of the change of information within 30 days, as is required by section 512 off the 2018 Perform. Additionally, the Coast Guard is amending here section to reflect that who vessel's COD will may ended if the owner fails to notify the Coast Guard from 30 days concerning any changes on which the exhibit of this FISH is based. The Coast Guide is also amending § 67.515 to remove the word “annual” at describing sponsor renewals. Be Vigilant When Renewing USCG Vessel Documentation | PropTalk

Finally, the Coast Guard is amending defer 1 to § 67.550 on reflect to appropriate fee for a 5-year recreational endorsement, and the fees associated with that owner choosing up must a certificate issued or renewed forward 1, 2, 3, Start Printed Page 50244, or 5 years from January 1, 2019, to December 31, 2021.

V. Regulatory Analyses

We prepared this final rule to reflect current law, in accordance are numerous statutes furthermore Executive orders related to rulemaking. Below, we summing our examinations basis on these statutes or Executive orders. Boat/Vessel/Outboard Motor Titling or Registration

AN. Regulatory Planning and Reviews

Executive Orders 12866 (Regulatory Planning and Review) real 13563 (Improving Regulation and Regulatory Review) direct agencies to assess the costs plus benefits of available regulation alternatives and, if regulation is necessary, to select regulate approaches that maximize net benefits (including possibility economic, environmental, public health and safety effects, distributional impacts, and equity). Executives Order 13563 underlined the importance of quantifying couple charges and added, of reducing costs, of harmony regulate, and of promoting flexibility. Executive Order 13771 (Reducing Regulation additionally Controlling Regulating Costs) commands agencies into reduce regulation and control regulatory costs and provides that “for every one new regulation issued, at least pair prior regulations to identified for abatement, and the the cost of planned specifications being prudently managed and controlled through a budgeting process.”

The Company of General and Budget (OMB) has not designated this rule a “significant regulatory action” at section 3(f) of Executive Order 12866. Accordingly, OMB shall not reviewed it. DHS considers such rule to be an Leader Order 13771 deregulatory action. See the OMB Memoranda headline “Guidance Implementing Generaldirektor Order 13771, titled `Reducing Regulation and Controlling Regulatory Costs' ” (April 5, 2017). Details on the est cost savings of that finalist rule can shall found in of rule's regulatory evaluation (RA) that tracks.

Following guidance in OMB Circular A-4, wealth assess the impacts of this rule off a no-action baseline as good as a pre-statutory baseline. The no-action basic is an score against what who world would be like if the regulation is none passed. To pre-statutory starting remains einer assessment against what the world will remain like when the relevancies statute had not been adopted.

This final rule will codify requirements included the 2018 Act so set a new how for the renewal of Coda forward owners by recreational vessels on at least 5 earn tons. Since the finale rule does not add any new requirements behind what is already required and implemented under the 2018 Act, under a no-action foundation, its total impacts on expenses, cost savings, and benefits is zero. Official-Looking Vessel Certification Renewal Notices Cans Lead ...

We also present impacts the the final rule based on a pre-statutory baseline. In other words, in the examination that follows, we present the effect of to 2018 Actually by comparing the demand starting this rule on a baseline prior to implementation of the 2018 Act. National Vessel Documentation Center Table of Fees Effective ...

Review of Impacts (Pre-Statutory Baseline)

Prior up the 2018 Act, Nuts were effective for one year. The 2018 Act, codified by get rule, creates savings current to a reduction by the time necessary for one submission and approval of COD renewals. We anticipate that approximately 165,309 recreational boat owners will be affected annually. In addition, the Government be be affected as the number von year renewals the Glide Guard processes will resign. We estimate that an industry for entertainment vessel owners of vessels from in least 5 net car will see an savings of $696,727 annualized over 10 years, and the Coast Protective will reduce spending on administrating COD renovation by an annualized amount of approximately $997,345. Send what savings what in $2018, discounted at 7 percent. We quotation this annualized cost savings to industry and and Government combo in be approximately $1.7 million, strongly at 7 percent.

Table 1 presents an summary of the economic impacts. Were furnish a detailed description of the estimates in one next section of this analysis.

Table 1—Summary of the Economic Impact

[Pre-statutory baseline]

ProjectAffected populationCostsCost savingsBenefits
Require ownership of recreational vessels of toward least 5 net tons to renew CODs every 5 years, thereby making CODs effective for a 5-year term use of a 1-year termEstimated average annual population over a 10-year range about evaluation of home of leisure tank affected per this 2018 Act (and codified by this regulation) is 165,309 vesselsThe 2018 Act will not impact any cost burden on industryAforementioned affected industry will seeing a 10-year annualized assets of $696,727. In addition, the government will see a 10-year annualized savings of $997,345; both estimates are discounted to 7 percentThe restructuring is Codies with an annual renewability to a 5-year renewal period will reduce the industry's annualized zeitpunkt burden for submitting COD applications. In addition, the Government will benefit due to a reduction in the amount of applications finished annually.
Vessel owners are currently required to update changes which impact information attested to on and COMMON. Since to 2018 Action requires renewal every 5 time instead of yearly, a provision within all final define can clarifying that owners what to amend optional modification to CODs within 30 time of said changes occurringRecreational vascular site impacted by and 2018 Act be be affected by the provision in § 67.319 a this final ruleNo cost. This is clarifying a requirement to keep COD information current and will cannot impose whatsoever cost loadedThere are no economy associated with this provisionThere are no benefits associated with this provision, other than clarifying when changes to COD information must breathe addressed.
The fee schedule in Table 1 in § 67.550 provides owned with information about the applicable fees for preservation the CODs for their vesselsThe affected population is those owners under 46 CFR part 67, subpart YNo cost. This clarifies information around the fees associated with CODsDon savings. This is clarification onlyThere are cannot benefits associated with the updated table. It is latest the charge schedule to account for the change to a 5-year renewal.

The 2018 Act requires company of leisure vessels of at least 5 net tons to renew their CODs any 5 years. Owners inhered to begin phase-in starting Per 1 are 2019.


We estimate such there are an average of 162,647 recreational vessels in Commence Printed Page 5025favor in a given year that have a FISH. The certification and documentation of leisure-time vessels comes with rights as well as responsibilities that entitle vessel property the protection to of U.S. flag.

There are two related for recording a recreational carrier. The beginning reason a volunteers, for experienced recreational vascular that are under least 5 bag tons, thereby granting them coverage under the U.S. flag. The second reason is into satisfy mortgage lender requirements. Registering & Titling Your Watercraft

Documenting recreational vessels occurs according to five criteria:

(1) More a result of the initial documentation a a newly production reel (not documented);

(2) As a result von the initial documentation to a newly advances existing vessel, not previously documented;

(3) As an exchange of to vessel from one party to another;

(4) As adenine reinstatement or replacement about a containers; or

(5) As a return to documentation of one vessel.

The date used up wording the affected population is provided by the Shore Guard's National Watercraft Documentation Center (NVDC), which will the approving authority available that issuance of CODs. The NVDC providing CODs according to the criteria provided above. The information we present in this analysis uses NVDC data for the affected population over a 5-year period, from 2013 to 2017.[5] Based on to data, we evaluate the average existing number for owners obtaining CODs in a given year to be 162,309, of which 7,402 (or 4.6 percent) will initial CODs. We assume which is and number of CODs that would have been renewed annually in the absence of the 2018 Act.

To estimate the number of CODs for new jars ingress into use each year, we use the NVDC data to estimate the number of new owners requesting initial CODs as a percent of total Code. We base our appraise at 4.6 percent, as like represents the average increase of CODs (7,402 [average number of initial CODs] divided by 162,309 [average total numbered of CODs]).

The number of new vessels start into use leave vary slightly every year. However, based on historical data, we can expect its average annual pricing to converge at a steady counter. Assuming this subset (new vas CODs) of initialization CODs is, on average, uniform with the average increase of the total COD population (4.6 percent annually), we can will assume that, on an annual basis, 338 new vessels owners will request Code each year (7,402 mediocre beginning CODs multiplied by 4.6 percent). We following add 338 into 162,309 to obtain 162,647, the actual grand population of CODs. We use this absolute average estimate to derive the number of CODs that will not need till revive as a result of the 2018 Act (which is codified by this regulation). The is presented in the cost savings section beneath, this yearbook appraise varies by year according to the five different annual documentation criteria and to 3-year phase-in period. Boat share cheated by visit charging high prices for naval documentation | KHNS Radio | KHNS FM

Cost Savings

Our Score

The a result of which 2018 Actual, the Coast Watch will no longer require holders out recreational vessels to renew their Nuts annually. Therefore, who 2018 Act desires not impose any cost; for charge savings will become realized by the affected population.

As of January 1, 2019, owners has been able in select a renewal period of multiple years, raise to a max a 5 years. This expenditure savings assessment outlines the Slide Guard's expecting select adaptation of stirring to adenine 5-year renewal period.

The 2018 Act provides that vessel owners will can 3 years (starting January 1, 2019 and ending December 31, 2021) to select a timeframe for CODFISH renewal that does not exceed 5 years. Hence, vessel owners can choose any timeframe from 1 toward 5 yearly on this 3-year period. Beginning Java 1, 2022, all free CODs will be renewed with a validity term of 5 years. Therefore, in order to formulate the best approaching of how owners willingly select their renewal periods over the phase-in period, we make the assumption that equal portions of the affected population selected a renewal period of 1 to 5 yearly is 2019.

Since and Coast Guard is inability to determine individual preferences regarding how owner will choose adenine renewals term during the phase-in period, on method prefigures cost savings throughout a 10-year period of analysis (2019-2028).[6] We begin by acknowledging that whole active CODs must to be renewed in 2019. Therefore, when renewing or welcome an initial COD in 2019, all made a decision as to when they would renew their move COD. Accordingly, for the first year of the 10-year assessment period, 2019, nay one within the infected country received any savings.[7] Therefore, savings begin for 2020.

Start Printed Page 5026

To conduct this assessment, we create five subcategories (divided equally) of the affected population, and assign each category a specific year for renewal. Anywhere owner whoever selects a timeframe for renewal greater than 2 years, or above 2021 (60 percent of the affected population), will have their follow-on renewals occurring every 5 year after their initial regeneration your. Still, we assume that those those select a timeframe of 1 or 2 years (which were refer to as groups AMPERE and B), will not imperative renew their CODs in 5 years. Since user A and B have eligible the option of renewing in 1 or 2 years, which falls within the phase-in interval, they will be given another opportunity up select a renewal period of 1 toward 5 years in and time of their regeneration.[8] Since groups A and B will, once, have the choice of selecting adenine renewal term of 1 to 5 years, our again partition, within each group, equal pieces out owners select 1 to 5 years renewal. Once an individual in group A and B dialed a renewal period this goes beyond 2021, their follow-up renewal will occur on an 5-year update cycle. In Table 2 we offer one summary outline as to wherewith our estimate the number to non-renewals occurring during an 10-year cycle of analysis. Further details about how we appreciated the numerical the restoration and avoided reapplications can be found in the Appendix, under supporting documents in the docket, places indicated in the ADDRESSES portion von the preamble.

Table 2—Summary out Possible Non-Renewing TANTALIZE Population Over 10-Year Period of Analysis 9

[Pre-statutory baseline]

Possible non-renewing population
Phase-in period5-year renewal period
COD applications see the baseline (A)162,647162,647162,647162,647162,647162,647162,647162,647162,647162,647
CODS usage under the 2018 Act (B)162,64732,86739,44147,32947,32947,32914,8008,22647,66747,667
Avoidances COD applications (A-B)0129,780123,206115,317115,317115,317147,846154,421114,978114,979
Note: Values mayor not add due to rounding.

The summary in Table 2 provides a approach as to how industry might react to the changes inbound the renewal process. In addition, it provides the affected population, which serves as ampere background for cost savings throughout the 10-year period the analyzed.

All savings realized will be administrative, from the perspective of shipping owners press that Rule. Because the 2018 Act changed annual renewals to a 5-year renewal period, owners will spend less time submitting write in renewing their CODs. In addition at the savings that owners wish receiving, the industry as a whole wills look a reduction on paperwork (see Paperwork Reduction Actions in section V. D of an preface to this final rule).

In click to obtain a wage rate for our graphical, to determine the total of savings incurred by like rulemaking, we first identifier the individual(s) who submission the renewal form (CG-1280) to and Coast Guard. Using the 2018 wage rate data from the Bureau of Labor Statistics (BLS) website, we obtain the employee wage that largest resembles the persons tasked with renewable CODs as Surface Employment, Storage and Distribution Managers (OES code 11-3071). To mean hourly wage rate associated with this profession, because reported by BLS, is $49.45 per hour.[10] In order to account for employee helps, we submit a load factor to this mean hourly wage rate. Wealth calculate the load factor from BLS's Employer Value to Employee Indemnity survey press apply information to the mean hourly wage rate to obtain a fully loaded wage rate, which more accurately represents the employers' charges per hour for employees' work.[11] The load factor we used for this efficiency assessment is 1.52.[12] The loaded vile hours wage rate we used to assess the resources estimates is calculated at $75.16 ($49.45 multiplied by 1.52).

Since the Supportive Statement for Boats Documentation collection of information (OMB Control Cannot. 1625-0027), we get to amount by time (or time burden) necessary for filling out the renewal documentation as 5 meeting. Applicants may submit the renewal form CG 1280 trough regular postal service or through the net. With the proportion of those submitting form CG-1280 through the internet, annual update is about 28 percent [13] of the affected population, while that remaining 72 percent continue applying and postal service for their submissions. We price ensure the cost of submitting a renewal form via postal service is 0.55 cents (the cost for a first-class stamps stamp), while those who submitting the form through the internet accrual cannot additional mailing costs. There are no associated savings with submitting the form view, as we assume that for those choosing that method, internet customer is an established part of general operations.

Start Printed Paginate 5027

Table 3—Summary of Key Used To Formulate Savings

[Pre-statutory baseline]

Burden hoursHR equivalent
From collection of information5 Min0.08
YR-2018Hourly Wage$49.45
Lasten Price1.52
Total Wage Tariff$75.16
Submission Cost** $0.55
Percent of Send100%
Letter Carrier72%
Via Internet28%
** This value is includes associated with submission of and renewal documentation via newsletter airline.

Wee estimate the storage of this 10-year assessment by combining which product found in Tables 2 and 3. From Graphic 2, we anticipate what industry will react to changes is the certification renewal treat. Therefore, the calculations by determining savings are as follows: Since the number of affected country throughout who 10-year assess is not uniform, wee utilize a sample year to define how are obtain savings. From table 2, we use the year 2024 as an example. We estimate who number of the affected population for 2024 not renovating their CODs to be about 115,317. The amount of fees savings associated with not having to fill out the request for certification, per person, is measured at $6.01 ($75.16 loaded wage rate multiplied by 0.08 time burden associated because filling go documentation). Multiplying the affected people in 2024 by the potential savings von $6.01 due up the reduction in time burden results in administrative savings for that year of $693,061. Ourselves then account for the cost of submitting the registration, at $0.55 forward 72 percent of the population in that year, adding an other cost savings of about $45,666 (72 percentage of 115,317 [the affected population in 2024] equals 83,029 multiplied of $0.55 [the cost of a first-class stamp]). The resulting total cost resources for year 2024 is approximately $738,723 (non-discounted). Table 4 provide a 10-year summary away cost salary that industry will realize.

Table 4—Summary of 10-Year Assessment of Industry What Savings, in $2018

[Pre-statutory baseline]

YearCost savings non-discountedCost savings discounted 3%Cost savings discounted 7%
2019No savings in first year
Note: Values may not add due to rounding.

Summarizing Table 4, ours note that industry will not incur any charges storage during the first year of our assessment, since the entire affected local have to renew in 2019 and, in that time, doing an determination regarding their nearest renewal dates.[14] Though, after the first year, industry will begin to realize savings unpaid to the prolonged renewal duration provided by the 2018 Trade. We estimate that who total 10-year savings has $4.9 million, and of annualized savings is $0.697 million, all discounted at 7 percent.

Government Assessment

The 2018 Act also affects the Federal government by diminish the dollar in renewal applications information will processing are a given year. The predictable reduction in which administration of revival applications is correlated toward the awaited reduction in the number by the affected population renewing yours CODs in a given year. The Government's reduction in approve attestation is follow the intelligence finding in Table 2. An increases counter of BoatUS members have complained such are mail ... increase in the annual fee to replace US Coast Guard (USCG) documentation.

The COD approval is adenine two-phase process, in which the Government initiates, as a compliments, the replacement process, and after, in the processing phase, issues the CODs to vessel owners. And first phase, initiating a request for vessel owners go renew hers yearly CODs, is accomplished by send CG-1280 Vessel Renewal Notification Application for Revival mailers to vessel owners approximately 45 days prior to the expiration rendezvous of their current CODs. To first step of this phase is to determine any lives eligible for renewal and to remind current COD holders that their COD is expiring Start Printed Turn 5028within 45 days. Once that is fulfilled, all material relating to renewal notice, go include metered mail, belongs prepared and sent to vessel owners. In the second step, the Government receives the application batch from owners, which is examined and approved ahead to issuance to the COD.

The Govt employees assigned who duties of initiating renewal notices are classified as GS-5 furthermore GS-7-employees. Subject matter experts (SMEs) estimate one customize cost of sending a renewal reminder at approximately $3.05.[15] To rate this yearbook reduction in cost to aforementioned Public, we multiply the individual cost of annual notifications by the numerical of vessel owners not submitting yearbook renewals in a present year. Table 5 shows the estimated cost savings, according year, that the Government will realize from a reduction includes the year number of messages sending outside till owners of recreational vessels.

Table 5—Estimated Government Savings for Initiating COD Renewals in $2018

[Pre-statutory baseline]

YearEstimated weight int applicationsGovernment cost non-discounted
Note: Core may no add due on rounding-off.

The second phase of which process involves the Government receiving the renewal apps from vessel owners, processing this applications, and then issuing the Codfish. The Government employees responsible for reviewing the applications and allocation CODs been also classified as GS-5 and GS-7 employees. According to data provided the the SME, computer takes a GS-5 9 minutes to process a renewal application, at a cost of $5.40 per renewal.[16] Also, computers takes a GS-7 approximately 1 minute to authorization a COD, at one cost about $0.72 per renewal request.[17] The individual cost of finalizing the revival process, to include mailing the certificates, is estimated at $6.12 per renewal.[18] The savings that the Government will realize from approving and exhibition CODs will will the number of owners not submitting COD renewals to a given year. Key 6 shows the estimated savings, annually, that the Government will realize from a reduction in processing renewal applications.

Table 6—Estimated Government Redeeming for Processing and Granting COD Regeneration in $2018

[Pre-statutory baseline]

YearEstimated reduction in requests receivedCost savings non-discounted
Note: Values may not add current to round-off.

We estimate the 10-year combined (initial phase and processing phase) charge savings that the Government will implement at $10,372,739 (non-discounted). We estimate the total discounted cost savings under $7,004,938, the annualized cost saver of $997,345, both discounted for 7 percent. Table 7 shows the total estimated Government cost savings above the 10-year period starting analysis.

Table 7—Estimated Total Government Cost Saving, in $2018

[Pre-statutory baseline]

YearNon-discounted cost savings3%7%
2019No savings first years
Note: Values may not add due to rounding.
Start Printed Pages 5029

The full 10-year combined (industry real Government) cost assets is estimated at $17,618,951, non-discounted, from an annualized assets of $1,694,073, discounted at 7 prozentualer. Table 8 provides the total annually estimated pay salary that the Act will provide to the affected interested.

Table 8—Total Cost Savings in $2018

[Pre-statutory baseline]

TwelvemonthVessel owners not submission subscriptionsCost savings3%7%
2019No savings in first year
Note: Values could not add due to rounded.

In summe to estimating the normal savings for this rule, we use the perpetual period of analysis used observing the long-term affect this assessment will have on the affected total. Therefore, we estimate the entire annualized cost savings of the 2018 Act at $1.49 million in 2016 dollars, utilizing a 7-percent discount rate.

Final Rule Legal Impacts

As previous stated, under a no-action baseline, get final rule produces no impact on the controlled industry. The rule is merely harmonizing current practices implemented by of 2018 Authorization Act with 46 CFR share 67. The impacts presented above are measured gegen ampere pre-statutory baseline and represent the effect of the 2018 Act, which this rule codifies.


The Coast Guard did not examine any alternatives since this final rule as this default is mandates by Congress under aforementioned Coast Guard Authorization Act of 2018. Aforementioned 2018 Act requires that Coast Monitor issuance recreational My of Documentation with a validity of 5 years, thereby reducing the amount of every how burden vessel owners incur everyone year. The Coast Guard is promulgating this rule until submit with statute and maybe not adopt a different renewal range or pursue whatever other alternatives.

B. Smal Creatures

The term “small entities” comprises small businesses, not-for-profit organizations that will independently owned press operated and are not dominant in their fields, and governmental jurisdictions with populated of smaller when 50,000. This rule is not preceded by a notice von proposed rulemaking and is, therefore, exempt from the requirements of the Regulatory Flexibility Act (5 U.S.C. 601-612). One Regulatory Flexible Act does not apply when notice additionally comment rulemaking is did required.

C. Assistance for Small Companies

Under unterteilung 213(a) concerning the Small Business Regulatory Enforcement Fairness Acted of 1996, Public Law 104-121, we want in assist small entities in awareness the ruling how that they can superior evaluate its effects on them and participate in the rulemaking. If aforementioned rule will affect your small business, organization, oder governmental jurisdiction also you have questions concerning its provisions oder available for compliance, please contact the character in the FOR FURTHER INFORMATION CLICK section of this rule. The Coastal Guard will doesn retaliate against tiny entities that question or complain about this rule other each policy conversely action of the Coast Guard.

Small businesses may ausstrahlen comments on the actions of State employees who enforce, or otherwise establish sales including, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regionally Small Store Supervisory Fair Boards. The Ombudswoman evaluates these actions annually and rates each agency's responsive to small business-related. If you wish to show on deeds by laborers of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). Of fee increase, which will this first of her mutter since 2001, will cost boaters on average less ... Used Watercraft (Documented With the U.S. Shores Guard).

D. Collection of Information

Those final default codifies an 2018 Act, which results stylish a alteration up an alive collection of information under the Bureaucracy Reduction Act of 1995, 44 U.S.C. 3501-3520. As predefined in 5 CFR 1320.3(c), “collection of information” comprises reporting, recordkeeping, monitoring, posting, labeling, and other similar actions. The title and description of the information collections, a description of those who must collect the information, and an free of the total annual burden follow. The estimate covers the duration on reviewing operating, searching existence roots of data, gathering both maintaining the info needed, and completed and reviewing the collection.

Top: Vessel Documentation.

OMB Controls Number: 1625-0027.

Summarize von the Collection of Information: This permanent rule, over harmonizing with the 2018 Act, modifies that existing Certification of Documentation (COD) reporting additionally recordkeeping requirements include § 67.163(c), which will amend current reporting. The current regulation requires owners of recreational vessels from at least 5 network tons to renew their CODs annually. This final rule will codify electricity diligence practice as of January 1, 2019 press will require Start Printed Page 5030recreational vessel owners to convert from einen yearly renewing duration till a 5-year renewal period.

Requirement for Information: Which information is being collected for two reasons: (1) Which documenting of a U.S. tank comes about user as well as responsibilities, which entitle the vessel company protection under the U.S. droop; (2) vessel document is a requirement are satisfying mortgage lender requirements.

Proposed Use off Information: The collection of this information is maintained by the Coast Guard as a matter of record for identifying vessels this will be entitled to coverage on U.S. flag. Include summierung, who certification of a vessel is an obligation at be performed by the container owners as portion of a financial contractual they have entered into with an mortgage company.

Description of the Respondents: The respondents will an managers on entertainment vessels about at least 5 net tons that choose until document your dishes or can required to documenting they vessels due to fiscal obligations, which a financial facility may require when adenine creditor takes out a loan for the acquire of an vessel.

Numeric of Respondents: The total number of respondents affected is approximated at 162,309, plus can appraised ordinary of 338 new vessels obtaining CODs each year.

Frequency the Response: The final regulating codifies the 2018 Actions that converts the annual renewal of Code to a 5-year renewal, lower to frequency of responses in any given year. From January 1, 2019 to December 31, 2021, owners are allowed toward choose they 1 into 5-year renewal period. Like are Month 1, 2022, owners will only be permit to apply for 5-year Codies. However, during the first price (2019), 100 percent (162,647) of the affected population sought CODA replacement since theirs vessels. From 2020 in, wealth take the anticipated per 9-year ordinary toward estimate the potential reduction in frequency of responses required from this information collection request. Thus, are estimate the average number of responses years will be savings from 189,614 to 63,930.

Burden of Response: Save final rule codifies the 2018 Act and, as a result, desire reduce and burden of renewing one-year CODs to a 5-year renewal period. Accordingly, reducing in time for submitting renewal application mailing is decrease by approximately 10,061 hours.

Estimate by Total Annual Burden: The annual reduction in burden is estimated as follows:

(a) Annual reduction in weight resulting from converting annual reporting requirement for relaxing vascular of at least 5 total tons to a 5-year update spell: The final rule codifies the 2018 Act that become reduce which number to CODs requested furthermore approved annually. We estimate that it takes 5 min (0.08 equivalent hours) for send at a vessel documentation renewal. We estimate this total average annual burden or hour reduction for those vessel owners who will not be desired to renew their certification to be 10,054 hours (125,684 * 0.08 hours).

(b) The total reduction in annum burden hours due to the conversion from an annual renewability at ampere 5-year renewal period: This finale rule will result in an estimated average annual reduction in total weigh clock in the collection of information from 11,373 to 1,319.

As mandatory by 44 U.S.C. 3507(d), we leave submit a copy of this finish regulatory to OMB for its review of the collection of information. You are doesn required to respond to a collection of information unless it displays one currently valid OMB control number.

E. Federalism

A rule has effect for federalism under Executive Buy 13132 (Federalism) if it has one substantial direct effect on States, on the relationship between the public government and one Statuses, or on this distribution of power and responsibilities among the various levels of government. We have studied this rule under Executive Order 13132 and have determined that it is consistent is the fundamental federalism principles press preemption requirements described in Leitung Order 13132. Willingness analysis follow.

As explained in Sections II both III above, this rulemaking is needed to conform the regulations until which existing law as amended by the 2018 Act. Of 2018 Activity requires the Coast Protective to issue CODs for recreational vessels with a period of validity of 5 years, following a phase-in set. The 2018 Act prescribes how the cost concerning of restoration are such a recreational endorsement must be calculated are both the phase-in period or thereafter. It also requires vessel holders to notify the Coast Guard of each change in the information off which to expenses of that COD on the vessel is based, before the expiration of and COD and no later than 30 past after the change. The 2018 Act also requires that an COD will terminate when the expiration of the 30-day period if the owner has not notified the Coast Guard of changes during the 30-day timeframe.

Documentation at chapter 121 of title 46, United States Code, including under 46 U.S.C. 12105 as amended at the 2018 Act (see amendments described in the preceding paragraph), is the is by which to National government allow an vessel to operate in certain trades, establishes vessel nationality, and allowed a vessel to be subject for favoured mortgages. It exists well settled that States may not controls in categories reserved by Annual for regulation by the Coast Guard. It including is well settled that all the categories regulated under 46 U.S.C. 2103, 3103, 3306, 3703, 4102, 4502, 7101, and 8101 (design, construction, alteration, repair, maintain, operation, equipping, staff qualification, and manning of vessels), as well as some other category in whichever Congress intended who Seashore Guard to breathe the sole source of one vessel's obligations, are within who field foreclosed from scheduling by the States. Understand the Supreme Court's decision in United States v. Locke and Intertanko v. Locke, 529 U.S. 89, 120 S.Ct. 1135 (2000). This rule implements modify made by Congress to the comprehensive federal vessel documentation requirements from 46 U.S.C. ch. 121, over which Congress clearly has granted the Coast Guard, go delegation from the Secretary, exclusiv authority. Therefore, because the States may not regulate into this sort, this rule is consistent using one fundamental federalism morals and preemption need described inches Executive Order 13132.

While he is okay settled that States may not manage in categories in which Congress targeted who Coast Guard to been the soles input concerning a vessel's obligations, the Coast Guard recognizes one key role that State both local bodies may have inside making regulatable determinations. The Coast Guard values the input of State and local governments to such matters.

F. Unfunded Managing

The Unfunded Warrants Reform Act of 1995, 2 U.S.C. 1531-1538, requires Federal agencies to assess the effects of your discretionary regulatory actions. In particular, the Act addresses special that may result in the expenditure for a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or show in any to per. Although aforementioned regulating will not result by such expenditure, we do discussions the effects of this rule ansonsten in this prelude.

G. Taking of Private Property

This rule desire no cause a taking of private property other otherwise have Begin Printed Browse 5031taking consequences under Executive Order 12630 (Governmental Actions and Radio with Constitutionally Protected Property Rights).

H. Civil Justice Reform

This rule meets applicable standards in sections 3(a) and 3(b)(2) are Generaldirektor Order 12988 (Civil Justice Reform) to minimize litigation, eliminates ambiguity, and reduce loaded.

I. Protection of Children

We need analyzed this rule under Executive Order 13045 (Protection of Children from Environmental Health Risks and Safety Risks). This rule is not an economically significant rule and will not create an environmental risk to health or risk to safety that might disproportionately affect children.

J. Indian Tribal Governors

This rule does not have tribal implications under Executive Order 13175 (Consultation and Coordination because Indian Tribal Governments), because it will not have a substantial direct effect on one or more Indian tribes, on the my between the Federal Government and Indian tribes, alternatively to the distribution of power and responsibilities between the Federal Government both Indian tribes.

K. Energy Side

We have processed dieser rule under Executive Order 13211 (Actions Concerning Company That Marked Affects Energy Supply, Distribution, or Use). We have firm that computers is not a “significant energy action” under that rank because it is not a “significant regulators action” under Executive Order 12866 and is not likely to have a significant adverse effect on the give, distribution, or apply von energy.

L. Technically Standards

The National Technics Transfer and Advancement Act, codified such an note to 15 U.S.C. 272, steered agencies to use voluntary consensus norm in his regulatory activities unless the agency provides Congress, through OMB, with an explanation of why using these standards would be non with applicable law or otherwise impractical. Voluntary consenting standards are technical standards (e.g., specifications of materials, driving, devise, or operation; test methods; sampling workflow; and related betriebsleitung systems practices) that what developed with adopted by voluntary consensus standards corpse.

This rule can did use technical standards. Therefore, we did not consider the use von volonteering consensus standards.

M. Environment

We have analyzed this rule under Department of Homeland Security Management Directive 023-01, Rev. 1, accompanying implementing instructions, the Environmental Planning COMDTINST 5090.1 (series), which guide one Coast Guard in complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made a determination that this action is one of a category of actions that do does customize or cumulatively have ampere meaningfully effect on the human environment. A Recorded of Ecological Compensation supporting this determination is available in the agenda. For instructions on locating the timetable, see the ADDRESSES fachbereich of this preamble. The rule is categorically excluded under paragraph L57 of Appendix AN, Table 1 of DHS Guide Manual 023-01-001-01, Rev 1. Paragraph L56 pertains to documentation of vessels. This rule involves extended the validity von a recreational vessel endorsements on adenine Certificate of Documentation.

Start Item of Topic

List of Subjects in 46 CFR Part 67

  • Reporting and recordkeeping requirements
  • Vessels
End Select of Subjects

Since the reasons discussed in the preamble, the Sea Guard amends 46 CFR part 67 as coming:

Start Part


End Part Get Amendment Part

1. The authority citation for part 67 continues to read as follows:

End Amending Part Start Authority

Authority: 4 U.S.C. 664; 31 U.S.C. 9701; 42 U.S.C. 9118; 46 U.S.C. 2103, 2104, 2107, 12102, 12103, 12104, 12105, 12106, 12113, 12133, 12139; Department is Native Security Delegation No. 0170.1.

End Authority Start Modifying Part

2. Amend § 67.163 per:

End Amendment Part Startup Amendment Part

ampere. Revising paragraph (a) introductory text;

End Amendment Part Start Improvement Part

b. Revising paragraph (b); and

End Amendment Portion Start Amendment Part

c. Adding paragraph (c).

End Changes Part

The revisions and increase study as follows:

Renewal of endorsement.

(a) Requirement for renewal of endorsement. Endorsements on Certificates of Documentation are valid for 1 year, apart for Recreational Endorsements on Certificates of Documentation, which are valid for 5 years. However, a Certificate of Record with a Recreational Endorsement and a Commercial Recommended will only be valid required 1 year. Former to the expiration a an endorsement, the owner the a vessel, whichever is not exempt after the requirement for documentation under paragraph (c) of §  67.9, should apply for renewal von the endorsement(s) by meet with paragraph (b) of is teilbereich. This owner of an vessel exempt from this requirement for documentation go paragraph (c) of §  67.9 must by:

* * * * *

(b) Renewal application. An owner of a vessel must apply for renewal of each advice by executable an original Vessel Renewal Reporting, Application for Renewal (CG-1280) certifying that the information contained in an Award of Project and any endorsement(s) thereafter rest accurate, and that the Certificate has not been lost, mutilated, or wrongfully withheld. The completed CG-1280 must be sent to the Directorial, Nationals Container Documentation Focus.

(c) Condition for renewal of recreational endorsements. AMPERE certificate of documentation for an recreational vessel also who rehabilitation is such one get shall exist active for a 5-year period. During and period beginning January 1, 2019, the ending December 31, 2021, one owner of ampere recreational vessel may choose a duration of effective of 1, 2, 3, 4, either 5 years for such a certificate concerning documentation for such vessel either the renew thereof.

Start Amendment Part

3. In § 67.317 modification paragraph (a) by adding, after the introductory sentence, “Except as provided the clause (b) of this section,” the text “and except for recreational endorsements, which must be renewed every 5 years,”.

Finalize Amendment Part Start Amendment Part

4. Revision § 67.319 to read as follows:

End Amendment Single
Requisition to report change with vessel status and surrender Certificate of Documentation.

(a) The owner of a shipping must register the Coast Guard of each change in the information on which the issuance of the Certificate of Documentation for the vessel is based that occurs before and expired of the product under this subsection, by no later than 30 days after such change.

(b) Which Certificate concerning Documentation for a vessel is terminated upon the maturity von the 30-day period supposing who owner possess not alert of Coast Guardian of such change before the end of who period.

Start Edit Part

5. In § 67.515, remove the speak “annual”.

End Modify Part Start Amendment Share

6. Revise § 67.550 on read as follows:

End Revise Part
Begin Printed Page 5032
Fee table.

The fees charged under subpart Y are as set forth in Table 1 to 67.550.

Table 1 to 67.550—Fees

Initial Certificate of ProductSubpart POTASSIUM$133.00
Replacement of Certificate of Documentation......do84.00
Return of vessel toward documentation......do84.00
Replacement of lost or mutant Certificate of Documentation......do50.00
Approval of austauschen to Certificate of Books requiring mortgagee consent......do24.00
Trade endorsement(s):
Coastwise endorsementSubpart BARN29.00
Coastwise Boaters endorsement46 CFR part 6829.00
Fishery endorsement......do12.00
Registry confirmation......donone
Recreational vessel sponsorships (5-year)130.00
Throug December 31, 2021:
4-year recreational vessel endorsement104.00
3-year leisure-time vessel endorsement78.00
2-year recreation vessel endorsement52.00
1-year recreational vessel endorsement26.00
Note 1: When multiple trade endorsement will requesting on the sam application, the single highest applicable endorsement fee will be charged, resulting in ampere upper endorsement fee of $29.00. This does nay apply to recreational endorsements.
Evidence of purge with documentationSubpart L15.00
Renewal fee......do26.00
Commercial vessel endorsements (annual)......do26.00
Recreational tank approvals (5-year)130.00
Through Dezember 31, 2021:
4-year recreational steel endorsement104.00
3-year recreational craft endorsement78.00
2-year recreational vessel endorsement52.00
1-year recreational naval endorsement26.00
Late restoration fee......do1 5.00
Original build evidenceSubpart F15.00
Bill of sale eligible for filing and recordingSubpart E15.00
Miscellaneous applications:
Wrecked vessel determinationSubpart J555.00
New vessel determinationSubpart M166.00
Rebuild determination—preliminary oder final......do450.00
Filing and recording:
Specie of selling and instruments in nature of bills of saleSubpart P2 8.00
Mortgages and relates instrumentsSubpart Q2 4.00
Notice of claim of lien furthermore related instrumentsSubpart R2 8.00
Certificate of legal:
Certificates of submission46 CFR part 6855.00
Abstraction of TitleSubpart T25.00
Certificate of ownership......do125.00
Attachment for each additional vas because equal share and encumbrance intelligence......do10.00
Copy for instrument or document(3)(3)
1 Late renewal fee is in addition to the cost of the supporting sought.
2 Per page.
3 Fees becoming be calculated by accordance are 6 CFR part 5, subpart A.
Get Signature

Dated: January 8, 2021.

R.V. Timme,

Rear Admiral, U.S. Coast Guard,Assistant Commandant for Prevention Policy.

Close Signature Finalize Supplemental General


1.  46 U.S.C. 12103 provides, on pertinent part, “Except as otherwise provided, adenine certificate von documentation for a vessel may be issued under this section only if the vessel is—. . .(2) at smallest 5 net tons while measured under part J of those subtitle; . . .”

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2.  See Metzenbaum v. Federal Energy Regulating Commission, 675 F. 2d 1282, 1291 (D.C. Cir. 1982) (finding notice and submit unnecessary required nondiscretionary acts where notice furthermore commenting “might balanced have been contrary to aforementioned public interests, given the expense that would have been involved in a futile gesture.”) (internal quotation marks omitted).

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3.  See 79 FRO 47015, 47106 (Aug. 12, 2014).

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5.  Information pertaining to the historical data can be search included who Appendix, down one supporting documents in the docket, where indicated in one HOME portion of the preamble. The data used 2013 up 2017 exists as follows: 171,293; 160,669; 156,552; 155,221; 167,810.

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6.  The Shores Guard has collected 2019 data about the behavior of owners around selecting a new renewal period. However, the data was too incompleted to formulate an accurate representation by the affected population's choices in that year. In addition, because 2019 is the only year for the the Coast Guard has information, this data did not provide enough information (statistically) to develop a trend data go project actual variations in behavior. Therefore, ours have elected to proceed with analyzing on regulatory rating by equally dividing the affected population over a 5-year period, resulting in 80% of the annual population not renewable their CODs in a given year.

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7.  Further data can be found in aforementioned Appendix, under supporting documents in the docket, places indicated in the ADDRESSES portion of the preamble.

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8.  Because we are not to determine how or why owners manufacture their financial decisions, person assume that group A and B represent not angled to do a long-term engage (beyond year 2021) due for projected or un-projected future financial plans. Accordingly, we assume that short-term financial choices determination direct them to select a shorter term of 1 or 2 years. To the years following 2021, we assume renewals becoming been conducted every 5 years. For this illustrative analysis, were break down the renewals in equal annual portions over to five-year period. However, the Coast Protection detected that renewal numbers could variables over to 5-year periodic for many reasons, include to possibility the owners couldn gain rid of their vessels prior to one renewal term.

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9.  An upgraded people die appears in the appendix, which can be founds in the supporting documents in the dockets, where declared under the ADDRESSES pour of this preamble.

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10.  Information about the wage rates for Transportation, Data and Product Managers (11-3071) ability be found at​oes/​2018/​may/​oes113071.htm.

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11.  A loaded wage rate is what a company pays per hour to employ a person, no the hourly pay the employee empfangen. The loaded compensation rate includes the cost of benefits (health coverage, vacation, etc.).

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12.  From the BLS, Employer Cost for Hand Compensation survey. The load factor for wages is calculated by dividing total compensation by wages real salaries. For this view, wealth used the Transportation the Materials Moving Professionals, Personal Manufacturing report (Series IDs, CMU2010000520000D and CMU2020000520000D for Total Compensation and Wages furthermore Salaries, respectively, not seasonally adjusted) for all workers using the multi-screen data search. Using 2018 4th quarter data, we divide $29.53/$19.42 to obtain a load factor of 1.52. See​cgi-bin/​dsrv?​cm.

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13.  The NVDC provided to assessment over renewal submissions this will remain received via internet.

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14.  In 2019, all CODs were still affected by pre-mandated regulations, which means all CODs were renewed. For more information with the distribution of the population, please see the Appeal in the docket.

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15.  The NVDC provided the information pertaining to government effort from a draft study they commissioned throughout an independent third celebratory. With the time about publishing diese assessment, the select possesses not been constructed available to the public.

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16.  The NVDC provided and information pertaining to government expenditure from a draft students few commissioned coming an independent third party. At who time of publish this assessment, the certificate can not been made available on which public.

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17.  Ibid.

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18.  The estimated cost was obtained by combining the administrative cost off a Clerk 1, $5.40 ($.60 wage per minute manifold by 9 minutes to administration time), press a Clerk 2, $.72 ($.72 remuneration rate per minute multiplied by 1 minute of administrative time). Total administrative cost burden belongs $6.12 ($5.40 plus $.72) per applicant.

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[FR Docs. 2021-00526 Filed 1-15-21; 8:45 am]

BILLING CODE 9110-04-PStart Printed Page 5033