Discharge Removal Equipment
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Notice of Final Rulemaking
Updated Final Regulatory Analysis
USCG - 2011 - 0430
RIN:  1625-AA02

February 2016

Prepared by:
United States Coast Guard
Office of Standards Evaluation and Development
Standards Evaluation and Analysis Division
United States Coast Guard Headquarters
Washington, DC

Contents
Executive Summary	i
1.0  Introduction	1
1.1  Statutory Authority	1
1.2  Background	1
1.2.1  Justification of this Final Rule	2
1.3  Objective and Legal Basis	2
1.4  Need for Federal Regulatory Action	5
1.5  Alternatives Considered	5
1.7.1  Overview of Sources	7
1.8  Organization of the RA	8
2.0  Overview of the 1993 DRE Interim Final Rule and the Supporting Regulatory Analysis	9
2.1  DRE Rule's Key Provisions Evaluated in This Analysis	11
2.1.1  Deck Coaming	11
2.1.2  Deck Spill Equipment	11
2.1.3  Internal Cargo Transfer Capability	12
2.1.4  Damage Stability Information	12
2.2  Summary of 1993 RIA Methodology, Data, and Results	13
3.0  Affected Population	15
3.1  Updated Period of Analysis	15
3.1.1  Estimating the Number of Vessels Likely Affected by the Final Rule from 1994 through 2012 (Update)	15
3.1.2  Estimating the Number of Vessels Likely Affected by the Rule from 2013 through 2016	23
4.0  Updated Analysis of Affected Spill Incident Data (with the IFR in effect)	30
4.1  Spill Incident Analysis	30
4.1.1  Estimating the Number and Volumes of Spills from 1994 through 2012	31
4.1.2  Spill Data 1994 through 2001	32
4.1.3  Spill Data 2002 through 2012	36
5.0  Updated Cost Analysis	46
5.1  Deck Coaming	46
5.2  Deck Spill Equipment	49
5.3  Internal Cargo Transfer Capability	51
5.4  Damage Stability Information	52
5.5  Summary of Costs	54
6.0  Benefits	59
6.1  Methodology for Calculating the Oil Volumes Mitigated by the Rule	60
6.2  Deck Coaming	62
6.3  Deck Spill Equipment	62
6.4  Internal Cargo Transfer Equipment	63
6.5  Damage Stability Information	65
6.6  Note on 2002 -2012 Spill Data	66
6.7  Summary of Benefits	67

List of Tables

Table ES-1.  Summary of Estimated Costs, Replication of 1993 RIA (7 and 3 Percent Discount Rates) ($Millions, 1993 Dollars), 1994-2016	iii
Table ES-2.  Comparison of Annualized Updated Costs and 1993 RIA Costs (7 and 3 Percent Discount Rates) ($ Millions, 1993 Dollars), 1994-2016	v
Table ES-3	Comparison of Estimated Updated Benefits to 1993 RIA Estimated Benefits (Bbls Mitigated) (7 and 3 Percent Discount Rates) ($ Millions, 1993 Dollars) 1994-2016	viii
Table ES-4.  Summary of Annualized Updated Benefits in Bbls Mitigated (7 and 3 Percent Discount Rates) ($ Millions, 1993 Dollars) 1994-2016	xi
Table 1.1.  Title 33, CFR Part 155, Amendments by DRE IFR	3
Table 1.2.   Subsequent Changes to the IFR Regulations	4
Table 2-1.  Summary of the Interim Final Rule's Key Provisions, and Regulatory Alternatives Evaluated and Baseline Compliance Level Assumed in the RIA	10
Table 2-2.  Summary of Costs and Benefits Estimated by the 1993 RIA, 1993 dollars	14
Table 3-1.  Summary of Steps Taken to Screen and Analyze USCG vessel Data	16
Table 3-2A	Estimated Updated Number of Oil Tankers Affected by the Final Rule, and Size (length), 1994 - 2012	19
3-2a, 2b5,	19
Table 3-2B.  Estimated Updated Number of Offshore Barges Affected by the Rule, and Size (length), 1994 - 2012	20
Table 3-2C.  Estimated Updated Number of Inland Barges and Secondary Vessels Affected by the Rule by Vessel Type 1994 - 2012	21
Table 3-3.  Comparison of Vessel Population Estimates Between the 1993 RIA and this Updated Analysis	22
Table 3-4.  Summary of Data Relevant to Oil and Petroleum Product Transported in the United States, 1990 - 2009	23
Table 3-5A.  Estimated Updated Number of Oil Tankers Affected by the Final Rule, by Vessel Type and Size (length), 2013 - 2016	28
Table 3-5B.  Estimated Updated Number of Offshore Oil Barges Affected by the Final Rule, by Vessel Type and Size (length), 2013 - 2016	28
Table 3-5C.  Estimated Updated Number of Inland barges and Secondary Vessels Affected by the Final Rule by Vessel Type, 2013-2016 (cont'd)	29
Table 4-1A.  Updated Estimate of Volume of Spills Affected by the Final Rule, by Vessel Type, Size (length), and Cause (BBLs), 1994- 2001	34
Table 4-1B.  Updated Estimate of Number and Volume of Spills Affected by the Rule, by Vessel Type, Size (length) (BBLs), 1994 - 2001	35
Table 4-2.  Summary Steps Taken To Consolidate And Analyze USCG Spill Incident Data	36
Table 4-3A.  Updated Estimate of Volume of Spills Affected by the Final Rule, by Vessel Type, Size (length), and Cause (BBLs), 2002 - 2012	38
Table 4-3B.  Updated Estimate of Number and Volume of Spills Affected by the Rule, by Vessel Type, Size (length) (BBLs), 2002  -  2012	39
Table 4-4A.  Comparison of Spill Estimates for Small Offshore Oil Barges and Inland Oil Barges	40
Small Offshore Oil Barges, L<400 ft (BBLs)	40
Table 4-4B.  Comparison of Spill Estimates for Small Offshore Oil Barges and Inland Oil Barges Inland Oil Barges (cont'd) (BBLs)	41
Table 4-5.  Number and Volume of Spills Reported by the 2012 USCG Compendium Report	42
Table 4-6A.  Projection of Estimated Volume of Spills Affected by the Final Rule, by Vessel Type, Size (length), and Cause, 2013-2016	45
Table 4-6B.  Projection of Estimated Number and Volume of Spills Affected by the Rule, by Vessel Type, Size (length), 2013-2016	45
Table 5-1.  Estimated Updated Deck Coaming Costs (7 and 3 Percent Discount Rates) ($ Millions, 1993 Dollars), 1994-2016	48
Table 5-2.  Estimated Updated Deck Spill Equipment Costs (7 and 3 Percent Discount Rates) ($ Millions, 1993 Dollars), 1994-2016	50
Table 5-3.  Estimated Updated Internal Cargo Transfer Equipment Costs (7 and 3 Percent Discount Rates) ($ Millions, 1993 Dollars), 1994-2016	52
Table 5-4.  Estimated Updated Damage Stability Information Costs (7 and 3 Percent Discount Rates) ($ Millions, 1993 Dollars), 1994-2016	54
Table 5-5.  Updated Summary and Comparison of Estimated Costs to the 1993 RIA (7 and 3 Percent Discount Rates) ($ Millions, 1993 Dollars), 1994-2016	56
Table 5-6.  Summary of Updated and 1993 RIA Annualized Costs (7 and 3 Percent Discount Rates) ($ Millions, 1993 Dollars) 1994-2016	57
Table 6-1.  Summary of Assumptions Used to Estimate the Benefits of the DRE Rule	61
Table 6-2.  Estimated Updated Deck Coaming Benefits, in Bbls Mitigated	62
Table 6-3.  Estimated Updated Deck Spill Equipment Benefits, in Bbls Mitigated	63
Table 6-4.  Estimated Updated Internal Cargo Transfer Equipment Benefits, in Bbls Mitigated	64
Table 6-5.  Reported Spill Volumes in the 2002-2012 Oil Spill Incident Data Set that are Likely Associated with Spill Incidents Involving the Use of DRE Equipment	66
Table 6-6.  Summary of Estimated Updated Benefits and 1993 RIA Estimates in bbls Mitigated (7 and 3 Percent Discount Rates), 1994-2016	68
Table 6-7.  Summary of Annualized Benefits in Bbls Mitigated, 1994-2016	71

Acronyms
ANPRM	Advanced Notice of Proposed Rulemaking
BLS		Bureau of Labor Statistics
CFR		Code of Federal Regulations
COI		Certificate of Inspection
DHS		Department of Homeland Security
EO		Executive Order
IMO		International Maritime Organization
TRFA		Threshold Regulatory Flexibility Analysis
MISLE		Marine Information for Safety and Law Enforcement database
NAICS		North American Industry Classification System
NPRM		Notice of Proposed Rulemaking
NPV		Net Present Value
RFA		Regulatory Flexibility Act
USCG		United States Coast Guard
WTP		Willingness to pay

Executive Summary
This final Regulatory Analysis (RA) provides a updated assessment of the impacts to industry of the Discharge Removal Equipment final rule.  Under Section 6(a)(3)(c) of Executive Order (EO) 12866, "Regulatory Planning and Review," USCG is required to conduct an analysis of the costs, benefits, and other impacts of a significant rulemaking where the impacts of the rule have an annual effect on the economy of $100 million or more as defined in Section 3(f)(1) of the Order.

Since there has been a considerable time lag since the preliminary (1993) RIA and Interim Final Rule (IFR) were published, a number of things have changed.  Notably, certain changes in the statutes were made that reduced the costs of the 1993 IFR.  This analysis reflects the most up-to-date data and information available relating to the vessels, activities, and impacts associated with implementing the DRE requirements, in accordance with the IFR rule to be finalized.  The comments of the 2013 Notice of Intent (NOI) required no changes to the final rule.  USCG is not changing or adding new requirements to the final rule.

The 1993 RIA attempted to cost out 5 requirements from the IFR.  It also estimated the benefits from those implemented requirements.  Since that time, one requirement has been phased out due to a subsequent rulemaking and another was found to be less of a requirement since industry was already implementing most of it.  In addition, the 1993 RIA is not strictly comparable to our analysis here mainly due to data issues.  Also, since industry has complied with all of the remaining requirements, the actual net costs are zero.  Our cost analysis estimates presented in this report are only if industry had not complied with the IFR and are updated in nature.

Analytical Approach
Because the rule has been in effect on an interim basis since 1994, our analysis assesses impacts: that "looks back" on the costs and benefits of the IFR as an update (from 1994 through 2012) as well as the then expected costs from 2013-2016 in order to emulate the 23-year period of the 1993 RIA analysis.

Estimated Costs
The costs of the rule are based on the number of affected vessels and spills.  Our comparison of the baseline and incremental scenarios indicates that the number of spills are unaffected by the implementation of the rule.  We estimate the incremental costs of the rule as an update using our estimates of the actual number of affected vessels and spills (with the IFR in effect) reflected in the historic vessel and spill incident data recorded by the USCG.  The four DRE items of interest here are the following:
         o Deck Coaming;
         o Deck Spill kits;
         o Internal cargo transfer; and
         o Damage Stability Information.
We estimate the costs, as an update, from 1994 (Year 1) through 2016.  Costs are estimated over the twenty - three years for purposes of comparing the costs and benefits estimated by the 1993 regulatory impact analysis ("1993 RIA") over the same period of time.  Costs are estimated in 1993 dollars and present value costs and benefits are calculated assuming that year 1 (1994) is the base year.
As shown in Table ES-1, we estimate for the updated analysis (years 1994-2016) a total present value cost (in 1993 dollars) of $251.2 million using a discount rate of seven percent.

Table ES-1.  Summary of Estimated Costs, Replication of 1993 RIA (7 and 3 Percent Discount Rates) ($Millions, 1993 Dollars), 1994-2016
                               IFR KEY PROVISION
                                  OIL TANKERS
                           LARGE OFFSHORE OIL BARGES
                             (LENGTH > 400 FT)
                           SMALL OFFSHORE OIL BARGES
                             (LENGTH < 400 FT)
                               INLAND OIL BARGES
                               SECONDARY VESSELS
                                   TOTAL (5)
USCG Replication
Deck coaming (1)
(Section 5.1)
                                                                           $0.0
                                                                           $0.0
                                                                      $1.3 (3%)
                                                                      $1.3 (7%)
                                                                     $14.9 (3%)
                                                                     $14.4 (7%)
                                                                           $0.0
                                                                     $15.8 (3%)
                                                                     $14.6 (7%)
Deck spill equipment (2)
(Section 5.2)
                                                                           $0.0
                                                                           $0.0
                                                                      $2.4 (3%)
                                                                      $1.9 (7%)
                                                                      $8.8 (3%)
                                                                      $6.8 (7%)
                                                                      $1.0 (3%)
                                                                      $0.7 (7%)
                                                                      $13.1(3%)
                                                                      $9.2 (7%)
Internal cargo transfer capability  -  hoses and couplings (3)
(Section 5.3)
                                                                    $259.5 (3%)
                                                                    $178.1 (7%)
                                                                      $7.5 (3%)
                                                                      $5.6 (7%)
                                                                     $17.5 (3%)
                                                                     $13.0 (7%)
                                                                           $0.0
                                                                           $0.0
                                                                      $269.33%)
                                                                    $180.9 (7%)
Damage stability information (4)
(Section 5.4)
                                                                     $23.3 (3%)
                                                                     $16.3 (7%)
                                                                      $0.7 (3%)
                                                                      $0.6 (7%)
                                                                      $2.6 (3%)
                                                                      $1.9 (7%)
                                                                     $14.8 (3%)
                                                                     $10.6 (7%)
                                                                           $0.0
                                                                     $39.0 (3%)
                                                                     $27.0 (7%)
TOTAL (5)
                                                                    $282.8 (3%)
                                                                    $194.4 (7%)
                                                                      $8.3 (3%)
                                                                      $6.1 (7%)
                                                                     $23.8 (3%)
                                                                     $18.1 (7%)
                                                                     $38.6 (3%)
                                                                     $31.8 (7%)
                                                                      $1.0 (3%)
                                                                      $0.7 (7%)
                                                                    $354.4 (3%)
                                                                    $251.2 (7%)
1993 RIA ESTIMATE
Deck coaming (1) and spill equipment (2)
                                                                           $0.0
                                                                           $0.0
                                                                      $1.7 (7%)
                                                                      $4.5 (7%)
                                                                      $4.8 (7%)
                                                                     $11.0 (7%)
Internal cargo transfer capability  -  hoses and couplings (3)
                                                                     $91.3 (7%)
                                                                      $8.9 (7%)
                                                                           $0.0
                                                                           $0.0
                                                                    $100.3 (7%)
Damage stability information (4)
                                                                      $6.9 (7%)
                                                                      $0.8 (7%)
                                                                             NA
                                                                           $0.0
                                                                      $7.7 (7%)
TOTAL (5)
                                                                     $98.2 (7%)
                                                                     $11.4 (7%)
                                                                      $4.5 (7%)
                                                                      $4.8 (7%)
                                                                    $118.9 (7%)
Sources:  USCG updated analysis and 1993 RIA.
(1) Assumes a baseline compliance rate of 100 percent for oil tankers and large offshore oil barges.  Assumes a baseline compliance rate of 50 percent for small offshore and inland barges.  Deck coaming not required for secondary vessels.  1993 RIA assumed that inland barges would be exempt from coaming requirement.
(2) Assumes a baseline compliance rate of 100 percent for oil tankers and large offshore oil barges.  Assumes a baseline compliance rate of 50 percent for small offshore barges, inland barges, and secondary vessels.
(3) Assumes a baseline compliance rate of zero percent for oil tankers and offshore oil barges.  Internal cargo transfer capability not required for inland oil barges and secondary vessels.
(4) Damage stability information not required for secondary vessels.  1993 RIA did not estimate costs for inland barges.
(5) Totals may not sum due to rounding.

The 1993 RIA estimated a total cost of $118.9 million (without towing vessel and warehousing provisions that were removed from requirements shortly after IFR publication) assuming a discount rate of seven percent, which is  less than half of our estimate over the course of 22 years.  Our present value cost estimates (in 1993 dollars assuming a base year of 1994) are not directly comparable to those from the 1993 RIA because the 1993 RIA erroneously assumed that inland barges would be exempt from the coaming requirement.  In addition,  they were not required to estimate damage stability information costs for inland barges.  We summarize the cost estimate differences below.
   * For both deck coaming and deck spill equipment, the 1993 RIA estimated a total cost of $11.0 million (assuming a discount rate of seven percent), $1.7 million for small offshore barges, $4.5 million for inland barges, and $4.8 million for secondary vessels.  The 1993 RIA had erroneously assumed that inland barges would be exempt from the coaming requirement.  We estimate, as an update,  a cost of $25.1 million for deck coaming and deck spill equipment, $3.2 million for small offshore barges, $21.2 million for inland barges, and $0.7 million for secondary vessels.
   * For internal cargo transfer capability, the 1993 RIA estimated a total cost of $100.3 million (assuming a discount rate of seven percent, in 1993 dollars), $91.3 million for tankers and $8.9 million for barges.  We estimate , as an update, a cost of $196.6 million, $178.1 million for tankers and $18.6 million for barges.
   * For the damage stability information requirement, the 1993 RIA estimated a total cost of $7.7 million (assuming a discount rate of seven percent, in 1993 dollars), $6.9 million for tankers and $0.8 million for offshore barges.  However, the 1993 RIA did not estimate the costs for inland oil barges.  We estimate, as an update,  a cost of $29.5 million, $16.3 million for tankers, $2.5 million for offshore barges, and $10.6 million for inland barges.  The main reason for the differences in the 1993 RIA estimated benefits to this updated analysis  is that the former used an estimated number of vessels and product flows and the updated estimate used actual data for the most of the years since (we had to estimate 2013-2016).  Also inland barges were mistakenly not included in the former analysis.
TABLE ES-2.  Comparison of Annualized Updated Costs and 1993 RIA Costs (7 and 3 Percent Discount Rates) ($ Millions, 1993 Dollars), 1994-2016
                               IFR KEY PROVISION
                                  OIL TANKERS
                           LARGE OFFSHORE OIL BARGES
                             (LENGTH > 400 FT)
                           SMALL OFFSHORE OIL BARGES
                             (LENGTH < 400 FT)
                               INLAND OIL BARGES
                               SECONDARY VESSELS
                                   TOTAL (5)
USCG Replication
Deck coaming (1)
(Section 5.1)
                                                                           $0.0
                                                                           $0.0
                                                                      $0.1 (3%)
                                                                      $0.1 (7%)
                                                                      $0.9 (3%)
                                                                      $1.3 (7%)
                                                                           $0.0
                                                                      $1.0 (3%)
                                                                      $1.4 (7%)
Deck spill equipment (2)
(Section 5.2)
                                                                           $0.0
                                                                           $0.0
                                                                      $0.1 (3%)
                                                                      $0.2 (7%)
                                                                      $0.5 (3%)
                                                                      $0.6 (7%)
                                                                      $0.1 (3%)
                                                                      $0.1 (7%)
                                                                      $0.7 (3%)
                                                                      $0.8 (7%)
Internal cargo transfer capability  -  hoses and couplings (3)
(Section 5.3)
                                                                     $15.8 (3%)
                                                                     $15.8 (7%)
                                                                      $0.5 (3%)
                                                                      $0.5 (7%)
                                                                      $1.1 (3%)
                                                                      $1.1 (7%)
                                                                           $0.0
                                                                           $0.0
                                                                     $17.3 (3%)
                                                                     $17.4 (7%)
Damage stability information (4)
(Section 5.4)
                                                                      $1.4 (3%)
                                                                      $1.4 (7%)
                                                                      $0.0 (3%)
                                                                      $0.0 (7%)
                                                                      $0.2 (3%)
                                                                      $0.2 (7%)
                                                                      $0.9 (3%)
                                                                      $0.9 (7%)
                                                                           $0.0
                                                                      $2.5 (3%)
                                                                      $2.6 (7%)
TOTAL (5)
                                                                     $17.2 (3%)
                                                                     $17.2 (7%)
                                                                      $0.5 (3%)
                                                                      $0.5 (7%)
                                                                      $1.4 (3%)
                                                                      $1.6 (7%)
                                                                      $2.3 (3%)
                                                                      $2.8 (7%)
                                                                      $0.1 (3%)
                                                                      $0.1 (7%)
                                                                     $21.6 (3%)
                                                                     $22.3 (7%)
1993 RIA ESTIMATE
Deck coaming (1) and spill equipment (2)
NA
$0.0
$0.1 (7%)
NA
NA

Internal cargo transfer capability  -  hoses and couplings (3)
                                                                      $7.4 (7%)
                                                                      $0.7 (7%)
                                                                           $0.0
                                                                           $0.0

Damage stability information (4)
                                                                      $0.6 (7%)
                                                                      $0.1 (7%)
                                                                             NA
                                                                           $0.0

         Total(5)

$8.0 (7%)                            $.9(7%)

       0

Sources:  USCG updated analysis and 1993 RIA.
(1) Assumes a baseline compliance rate of 100 percent for oil tankers and large offshore oil barges.  Assumes a baseline compliance rate of 50 percent for small offshore and inland barges.  Deck coaming not required for secondary vessels.  1993 RIA did not calculate the annualized costs for tankers, inland oil barges, and secondary vessels.  1993 RIA assumed that inland barges would be exempt from coaming requirement.
(2) Assumes a baseline compliance rate of 100 percent for affected oil tankers and large offshore oil barges.  Assumes a baseline compliance rate of 50 percent for small offshore barges, inland barges, and secondary vessels.
(3) Assumes a baseline compliance rate of zero percent for oil tankers and offshore oil barges.  Internal cargo transfer capability not required for inland oil barges and secondary vessels.
(4) Damage stability information not required for secondary vessels.  1993 RIA did not estimate costs for inland barges.
(5) Totals may not sum due to rounding.

For years 1-23, the estimated annualized updated cost of the rule is $22.3 million assuming a discount rate of seven percent.  For both deck coaming and deck spill equipment, we could not readily compare our estimates to the 1993 RIA because the 1993 RIA did not calculate annualized costs for tankers and secondary vessels.  In addition, the 1993 RIA erroneously assumed that inland barges would be exempt from the coaming requirement.
For the internal cargo transfer capability requirement, our annualized updated cost estimate is more than twice that of the 1993 RIA for tankers and offshore barges ($17.4 vs. $8.1 million at 7% discount rate).  We estimate much higher numbers of affected tankers and offshore barges than the 1993 RIA based on the historic vessel data recorded by USCG.  By 2010, we estimate almost twice as many tankers (2,805 vs. 1,493) and more than 40 percent more offshore barges (323 vs. 231) than the 1993 RIA.  In addition, our equipment unit cost assumption ($20,000 to $40,000 per vessel in 1993 dollars) is moderately higher than that of the 1993 RIA ($14,500 to $29,000 per vessel in 1993 dollars).
Finally, our annualized updated cost estimate for the damage stability information requirement is more than twice that of the 1993 RIA for tankers ($16.3 million vs. $6.9 million at 7% discount rate).  Again, we estimate higher tanker numbers, which more than offsets the generally lower unit costs we assume ($2,500 initial and $540 annually per tanker adjusted in 1993 dollars, versus the 1993 RIA's $4,000 initial and $3,000 annually per tanker).
Estimated Updated Benefits
The benefits of the rule are based on the incremental reduction in the volume of oil spilled into the environment from the baseline condition.  We compare the spill volumes we estimated and projected under the baseline scenario (the world without the rule) and the incremental scenario (world with the rule, as reflected in the historic spill incident data recorded by USCG) to estimate the incremental volume of oil that is averted from entering the environment by the rule.
We estimate, as an update, the quantitative benefits associated with three of the four major provisions or requirements of the rule that are to be finalized in the final rule.  We quantify the benefits in terms of barrels (bbls) of oil not lost to the environment, on a present value basis for each of the two time periods described above.  Estimated updated annualized benefits are found in Table ES-4.

Table ES-3	Comparison of Estimated Updated Benefits to 1993 RIA Estimated Benefits (Bbls Mitigated) (7 and 3 Percent Discount Rates) ($ Millions, 1993 Dollars) 1994-2016
                               IFR KEY PROVISION
                                  OIL TANKERS
                           LARGE OFFSHORE OIL BARGES
                             (LENGTH > 400 FT)
                           SMALL OFFSHORE OIL BARGES
                             (LENGTH < 400 FT)
                               INLAND OIL BARGES
                               SECONDARY VESSELS
                                   TOTAL (5)
USCG Replication
Deck coaming (1)
(Section 6.2)
                                                                            0.0
                                                                            0.0
                                                                      74.8 (3%)
                                                                      55.2 (7%)
                                                                      71.2 (3%)
                                                                      47.3 (7%)
                                                                            0.0
                                                                     146.0 (3%)
                                                                     102.5 (7%)
Deck spill equipment (2)
(Section 6.3)
                                                                            0.0
                                                                            0.0
                                                                      13.0 (3%)
                                                                      11.6 (7%)
                                                                       7.2 (3%)
                                                                       5.8 (7%)
                                                                     157.8 (3%)
                                                                     102.8 (7%)
                                                                     178.0 (3%)
                                                                     120.2 (7%)
Internal cargo transfer capability  -  hoses and couplings (3)
(Section 6.4)
                                                                     461.0 (3%)
                                                                     344.3 (7%)
                                                                      46.4 (3%)
                                                                      39.8 (7%)
                                                                      67.5 (3%)
                                                                      56.6 (7%)
                                                                            0.0
                                                                            0.0
                                                                     574.9 (3%)
                                                                     440.7 (7%)
Damage stability information (4)
(Section 6.5)
                                                                             NA
                                                                             NA
                                                                             NA
                                                                             NA
                                                                             NA
                                                                             NA
TOTAL (5)
                                                                     461.0 (3%)
                                                                     344.3 (7%)
                                                                      46.4 (3%)
                                                                      39.8 (7%)
                                                                     155.3 (3%)
                                                                     123.4 (7%)
                                                                      78.4 (3%)
                                                                      53.1 (7%)
                                                                     157.8 (3%)
                                                                     102.8 (7%)
                                                                     898.9 (3%)
                                                                     663.4 (7%)
1993 RIA ESTIMATE
Deck coaming (1) and spill equipment (2)
                                                                            0.0
                                                                            0.0
                                                                     149.4 (7%)
                                                                      11.8 (7%)
                                                                     236.4 (7%)
                                                                     397.6 (7%)
Internal cargo transfer capability  -  hoses and couplings (3)
                                                                   6,700.0 (7%)
                                                                     840.0 (7%)
                                                                            0.0
                                                                            0.0
                                                                   7,540.0 (7%)
Damage stability information (4)
                                                                             NA
                                                                             NA
                                                                             NA
                                                                             NA
                                                                             NA
TOTAL (5)
                                                                   6,700.0 (7%)
                                                                     989.4 (7%)
                                                                      11.8 (7%)
                                                                     236.4 (7%)
                                                                   7,937.6 (7%)
Sources:  USCG updated analysis and 1993 RIA.
Notes:
(1) Assumes a pre-existing compliance rate of 100 percent for affected oil tankers and large offshore oil barges.  Assumes a pre-existing compliance rate of 50 percent for small offshore and inland barges.  Deck coaming not required for secondary vessels.  1993 RIA assumed that inland barges would be exempt from coaming requirement.
(2) Assumes a pre-existing compliance rate of 100 percent for affected oil tankers and large offshore oil barges.  Assumes a pre-existing compliance rate of 50 percent for small offshore barges, inland barges, and secondary vessels.
(3) Assumes a pre-existing compliance rate of zero percent for affected oil tankers and offshore oil barges.  Internal cargo transfer capability not required for inland oil barges and secondary vessels.
(4) Benefits not estimated for the damage stability information requirement.
(5) Totals may not sum due to rounding.

As shown in Table ES-3, for the RIA Replication, we estimate a total present value benefit of 663 barrels assuming a discount rate of seven percent.
The 1993 RIA estimated a total benefit of 7,938 barrels assuming a discount rate of seven percent, which is almost 12 times our estimate.  Our  d analysis of the present value benefit estimates are not directly comparable to those from the 1993 RIA because the 1993 RIA assumed that inland barges would be exempt from the coaming requirement.  That false assumption was corrected in the updated analysis.We summarize the benefit estimate differences below.
   * For both deck coaming and deck spill equipment, the 1993 RIA estimated a total benefit of 397 barrels (assuming a discount rate of seven percent), 149.4 barrels for small offshore barges, 11.8 barrels for inland barges, and 236.4 barrels for secondary vessels.  The 1993 RIA had assumed that inland barges would be exempt from the coaming requirement.  We estimate  a benefit of 222.7 barrels for deck coaming and deck spill equipment, 66.8 barrels for small offshore barges, 53.1 barrels for inland barges, and 102.8 barrels for secondary vessels, all at a seven-percent discount rate.
   * For internal cargo transfer capability, the 1993 RIA estimated a total benefit of 7,544 barrels (assuming a discount rate of seven percent), 6,700 barrels for tankers and 840 barrels for barges.  Our RIA Replication estimates a benefit of 440.7 barrels, 344.3 barrels for tankers and 96.4 barrels for barges.  The 1993 RIA does not provide sufficient detail to analyze why its estimate for tankers is so high, but likely it is because the 1993 RIA had forecasted much higher spill volumes for tankers.  Also, our methodology accounted for some 85 percent of possible spilled bbls.
Exhibit ES-4 summarizes our annualized benefits for the rule.  The 1993 RIA did not calculate the estimated benefits on an annualized basis.

Table ES-4.  Summary of Annualized Updated Benefits in Bbls Mitigated (7 and 3 Percent Discount Rates) ($ Millions, 1993 Dollars) 1994-2016
                               IFR KEY PROVISION
                                  OIL TANKERS
                           LARGE OFFSHORE OIL BARGES
                             (LENGTH > 400 FT)
                           SMALL OFFSHORE OIL BARGES
                             (LENGTH < 400 FT)
                               INLAND OIL BARGES
                               SECONDARY VESSELS
                                   TOTAL (5)
Annualized in Barrels, RIA Replication
Deck coaming (1)
(Section 6.2)
                                                                            0.0
                                                                            0.0
                                                                       4.5 (3%)
                                                                       4.9 (7%)
                                                                       4.3 (3%)
                                                                       4.2 (7%)
                                                                            0.0
                                                                       8.9 (3%)
                                                                       9.1 (7%)
Deck spill equipment (2)
(Section 6.3)
                                                                            0.0
                                                                            0.0
                                                                       0.8 (3%)
                                                                       1.0 (7%)
                                                                       0.4 (3%)
                                                                       0.5 (7%)
                                                                       9.6 (3%)
                                                                       9.1 (7%)
                                                                      10.8 (3%)
                                                                      10.7 (7%)
Internal cargo transfer capability  -  hoses and couplings (3)
(Section 6.4)
                                                                      28.0 (3%)
                                                                      30.5 (7%)
                                                                       2.8 (3%)
                                                                       3.5 (7%)
                                                                       4.1 (3%)
                                                                       5.0 (7%)
                                                                            0.0
                                                                            0.0
                                                                      35.0 (3%)
                                                                      39.1 (7%)
Damage stability information (4)
(Section 6.5)
                                                                             NA
                                                                             NA
                                                                             NA
                                                                             NA
                                                                             NA
                                                                             NA
TOTAL (5)
                                                                      28.0 (3%)
                                                                      30.5 (7%)
                                                                       2.8 (3%)
                                                                       3.5 (7%)
                                                                       9.4 (3%)
                                                                      10.9 (7%)
                                                                       4.7 (3%)
                                                                       4.7 (7%)
                                                                       9.6 (3%)
                                                                       9.1 (7%)
                                                                      54.7 (3%)
                                                                      58.7 (7%)
Sources:  USCG updated analysis and 1993 RIA.
Notes:
(1) Assumes a pre-existing compliance rate of 100 percent for affected oil tankers and large offshore oil barges.  Assumes a pre-existing compliance rate of 50 percent for small offshore and inland barges.  Deck coaming not required for secondary vessels.  1993 RIA assumed that inland barges would be exempt from coaming requirement.
(2) Assumes a pre-existing compliance rate of 100 percent for affected oil tankers and large offshore oil barges.  Assumes a pre-existing compliance rate of 50 percent for small offshore barges, inland barges, and secondary vessels.
(3) Assumes a pre-existing compliance rate of 86 percent (Years 21-30) or zero percent (Years 1-23) for affected oil tankers and offshore oil barges.  Internal cargo transfer capability not required for inland oil barges and secondary vessels.
(4) Benefits not estimated for the damage stability information requirement.
(5) Totals may not sum due to rounding.

Collection of Information
There is already an existing collection of information.  This rule would not require a new collection of information, nor would it change the existing collection of information under the Paperwork Reduction Act (44 U.S.C. 3501-3520).

1.0  Introduction
This final Regulatory Analysis (RA) represents an updated analysis of the costs and benefits of the 1993 IFR.  This analysis provides an updated assessment of the impacts to industry of proposed changes detailed in the Discharge Removal Equipment IFR that is being finalized into a Final Rule (DRE Final Rule).  In the DRE FR, Coast Guard is finalizing with no changes to 46 CFR part 155 as well as to add clarity and increase safety standards of the Oil Pollution Act of 1990 (OPA).  Consequently, this RA is designed to support the Final Rule and reproduces the 1993 RIA with current available data.

The OPA was passed by Congress in 1990 in response to the Exxon Valdez oil spill.  The Oil Pollution Act staff in Coast Guard Headquarters was charged with the responsibility to draft regulations and provide analysis that meets the requirements established in the OPA. The preliminary RA (then known as a Regulatory Impact Analysis or RIA) was developed and then issued in 1993, with the IFR implemented shortly thereafter.

Over the last twenty years, subsequent rulemakings modified the original 1993 IFR, but never finalized the original DRE IFR.  This RA is the supporting analysis for the Final Rule for DRE. In this RA, we have replicated the original RIA with current and observed data and provide an updated review of the 1993 IFR, accounting for the changes in the original IFR over the past 20 years, with estimates of those impacts. Since the IFR has been implemented over the past 20 years, the impacts are zero.  That is, the net impact of the DRE FR is zero.

1.1  Statutory Authority
The statutory authorities for this final rule is Section 4201(a)(6) of the Oil Pollution Act of 1990 (Pub. L. 101-380; 104 Stat. 484; August 18, 1990) that amended section 311(j) of the Federal Water Pollution Control Act (33 U.S.C.1321(j)) by, among other things, adding a new paragraph (6) to require vessels operating and carrying oil or a hazardous substance in bulk as cargo to carry appropriate discharge removal equipment (DRE) on board.

1.2  Background
On December 22, 1993, the U.S. Coast Guard (USCG) published an Interim Final Rule (IFR) that established DRE requirements for on-deck oil spills, and also required vessels to install spill prevention coamings, to install emergency towing arrangements, and to have a prearranged capability to calculate damage stability in the event of a casualty (58 FR 67988).   The rule was published on December 22, 1993 to "reduce the risk of oil spills, improve vessel oil spill response capabilities, and minimize the impact of oil spills on the environment."
On March 27, 2012, the USCG published a Notice of Intent (NOI) stating its intent to finalize the IFR and seeking public comment due to the amount of time that had passed since the IFR and accompanying regulatory impact analysis ("1993 RIA") were published (77 FR 18151).  The public comment period ended on May 29, 2012.  With respect to the 1993 RIA, the USCG was seeking current information related to the cost of compliance with certain DRE requirements.  We received no public comments relevant to the costs and benefits of DRE IFR.
The purpose of this RA is to provide an updated analysis of the costs and benefits of the final rule.  This analysis reflects the most up-to-date data and information available relating to the vessels, activities, and impacts associated with implementing the DRE requirements, in accordance with the interim final rule and rule to be finalized.  USCG does not anticipate changing or adding new requirements in the final rule.

1.2.1  Justification of this Final Rule
Agencies take regulatory action for various reasons, one being the failure of the market to reach the socially optimal outcome.  This can occur when there are economic incentives lacking for industry to pursue that outcome and such market failures are the impetus for this proposed rule.  A negative externality is the byproduct of a transaction between two parties that is not accounted for in the transaction. Vessels carrying bulk petroleum products that operate with lower environmental standards may cause harm or increased risk of harm without accounting for the consequences to third parties, who do not directly participate in the business transactions of the affected entities.  These costs are not borne by the responsible entities and are therefore external to the business decisions of the responsible entity.  The final rule addresses accountability for petroleum based spills and mitigation thereof, into U.S.A. waterways.   This Final Rule is finalizing the requirements of the IFR with no additional impacts.

The net impact of this final rule is expected to be zero; nevertheless, under Executive Order 13563, we conducted an updated analysis of the costs and benefits of the 1993 IFR.  Retrospective, or in this case updated analysis is a tool used to "look back" at an existing regulation to evaluate its actual benefits, costs, impacts, effectiveness, and unintended consequences.  Retrospective reviews were first mandated by Executive Order 12866 ("Regulatory Planning and Review"), which states that federal agencies will periodically review existing regulations.  In 2011, Executive Order 13563 ("Improving Regulation and Regulatory Review") strengthened the role of retrospective analysis by stating that each federal agency must develop and submit a plan for periodic review of its economically significant regulations.

1.3  Objective and Legal Basis

The legal basis for this rule is Executive Order 12777 (56 FR 54757; Oct. 18, 1991), sec. 2(f), which delegated the President's authority under 33 U.S.C. 1321(j)(6)(B) to require discharge removal equipment on vessels operating on navigable waters and carrying oil in bulk as cargo to the Secretary of the Department in which the Coast Guard is operating. The Secretary of Homeland Security delegated this authority to the Coast Guard in DHS Delegation No. 0170.1 .  Coast Guard is to finalize an existing IFR promulgated some 23years ago.  Initially, the IFR imposed the changes displayed in Table 1.1.

Table 1.1.  Title 33, CFR Part 155, Amendments by DRE IFR
                                  Section No.
                                      2-1 Title
                                    3-1 Amendment
§ 155.140
Incorporation by reference
Revised paragraph (a): in paragraph (b), added  an entry for International Maritime Organization  (IMO)  Resolution A.535(13) in Subpart A.
§ 155.200
Definitions
Added new section to subpart B.
§ 155.205
Discharge removal equipment for vessels 400 feet or  greater in length
Added new section to subpart B.
§ 155.210
Discharge removal equipment for vessels less than 400 feet in length
Added new section to subpart B.
§ 155.215
Discharge removal equipment for inland oil barges
Added new section to subpart B.
§ 155.220
Discharge removal equipment for vessels carrying oil as secondary cargo
Added new section to subpart B.
§ 155.225
Internal cargo transfer capability.
Added new section to subpart B.
§ 155.230
Emergency towing capability for oil barges
Added new section to subpart B.
§ 155.235
Emergency towing capability for oil tankers
Added new section to subpart B.
§ 155.240
Damage stability information for oil tankers and off-shore oil barges
Added new section to subpart B.
§ 155.245
Damage stability information for inland oil barges
Added new section to subpart B.
§ 155.310140
Containment of oil and hazardous material cargo discharges
Revised the section heading and the introductory text to paragraph (b); added paragraphs (c) and (d).
Source: Federal Register/ V. 77, No.59/ Tuesday, March 27, 2012, page 18153
Subsequently, additional modifications were made to the original DRE Interim Rule, resulting in various CFR changes.  Most notable was the replacement of the emergency towing guidelines.  These changes are presented in Table 1.2.

Table 1.2.   Subsequent Changes to the IFR Regulations
                                  Section No.
                            Source(s) of Amendment
                                   Amendment
                                   §155.140
CGD 96-026, 61 FR 33666, June 28, 1996: CGD-95-028, 62 FR 51194, Sept. 30, 1997; USCG-1998-4443, 63 FR71763, Dec. 30, 1998; USCG-1999-5151, 64FR 67176, Dec. 1, 1999; USCG-2008-0179, 73 FR 35015, June 19, 2008; USCG-1998-3417, 73 FR 80648, Dec. 31, 2008, as amended by USCG-2001-8661, 74 FR 45026, Aug. 31, 2009; USCG-2010-0351, 75 FR 36285, June25, 2010
Periodically updated CG and other addresses, replaced emergency towing arrangement guidelines for tankers in 1997, revised format of section in 2008.
                                   §155.200
USCG-2001-9046, 67 FR58524, Sept. 17, 2002, 73 FR 79316, Dec. 29, 2008
Added definition in 2002, then removed same definition in 2008.
                                   §155.205
USCG-1998-3799, 64 FR 35531, June 30, 1998
In paragraph (a), removed compliance date that had passed.
                                   §155.210
USCG-1998-3799, 64 FR 35531, June 30, 1998
In paragraph (a), removed compliance date that had passed.
                                   §155.215
USCG-1998-3799, 64 FR 35531, June 30, 1998
In paragraph (a), removed compliance date that had passed.
                                   §155.220
USCG-1998-3799, 64 FR 35531, June 30, 1998
In paragraph (a), removed compliance date that had passed.
                                   §155.225
USCG-1998-3799, 64 FR 35531, June 30, 1998
In paragraph (a), removed compliance date that had passed.
                                   §155.230
USCG-1998-4443, 65 FR 31811, May 19,2000,as amended by USCG-2001-8661,74 FR 45026, Aug. 31, 2009; USCG-2010-0351, 75 FR 36285, June 25, 2010
Replaced section in 2000, renamed to emergency control systems for tank barges.
                                   §155.235
CGD 95-028, 62 FR 51194, Sept. 30, 1997; USCG-2001-8661, 74 FR 45026, Aug. 31, 2009
Replaced section in 1997 and again in 2009.  Revised into one paragraph stating emergency towing arrangements must be on both ends of oil tankers not less than 20,000 deadweight tons (dwt). Referenced more recent IMO Maritime Safety Committee resolution.
                                   §155.240
USCG-1998-3799, 63 FR 35531, June 30, 1998
In paragraph (a), removed compliance date that had passed; and in paragraph (d) redesignated paragraphs (i), (ii), and (iii) as paragraphs (1), (2), and (3) respectively.
                                   §155.245
USCG-1998-3799, 63 FR 35531, June 30, 1998
Removed compliance date that had passed.
                                    155.310
USCG-1998-3799, 63 FR 35531, June 30, 1998
Removed compliance date that had passed.
Source:  Federal Register/ V. 77, No.59/ Tuesday. March 27, 2012// page 18154

1.4  Need for Federal Regulatory Action
This final rule addresses environmental requirements from OPA 90.  Section 4202(a) (6) of the Oil Pollution Act of 1990 (OPA 90) (Pub L. 101-360; 104 Stat. 484; August 18, 1190) amends section 311(j) of the Federal Water Pollution Control Act (33 U.S.C. 1321(j))by, among other things, adding a new paragraph (6) to require vessels operating on the navigable waters of the United States and carrying oil or a hazardous substance in bulk as cargo to carry appropriate DRE on board.  Since the IFR has been implemented over the past 20 years, we expect the net impacts of this final rule on industry to be zero.  However, in accordance with Executive Order 12866, "Regulatory Planning and Review," as well as Executive Order 13563, "Improving Regulation and Regulatory Review," the CG is conducting an updated review of the 1993 IFR to evaluate the actual impacts and effectiveness of the IFR on industry.

1.5  Alternatives Considered
USCG considered several alternatives when developing this final rule.  Executive Order 12866 directs Federal agencies to assess all costs and benefits of available regulatory alternatives, including the alternative of not regulating.

Additionally, OMB Circular A-4 is designed to assist regulatory agencies by defining good regulatory analysis.  The Circular provides guidance to standardize the way benefits and costs of Federal regulatory actions are measured and reported.

The alternatives considered by USCG included:

Alternative One  -  No Action.  The Coast Guard considered and rejected the no action alternative, which would leave the existing regulations (pre OPA 1990 rules) without finalizing them.

Alternative Two  -  Use of International Rules.  USCG rejected this alternative as too costly since the IFR rule has already been implemented with no response from industry. The International Maritime organization (IMO), for example, has similar rules that Coast Guard estimated qualitatively would likely be prohibitively expensive to integrate within our own structure.

Alternative Three  -  Current rulemaking that finalizes the USCG  IFR of 23 years ago. We selected this approach since industry has already implemented it with subsequent rulemaking modifications over these last 21 years.

1.6   Analytical Approach
IN THIS SECTION, WE PROVIDE AN OVERVIEW OF THE ANALYTIC FRAMEWORK APPLIED IN THIS REPORT.  THE ANALYSIS ESTIMATES:  HISTORICAL INCREMENTAL IMPACTS RESULTING FROM IMPLEMENTATION OF THE IFR.

1.6.1  Updated Analysis of the IFR
In looking at the IFR impacts retrospectively from 1994 through 2016, we are interested in assessing and estimating the actual incremental costs and benefits of the IFR.  To isolate these incremental impacts, we must compare actual outcomes with a hypothetical baseline scenario describing what the world would have looked like without the IFR.  As discussed above, characterizing the baseline condition is an important first step in appropriately assessing the incremental effects of the IFR.  This would be measured in terms of the volume of affected oil spills andits associated compliance costs to industry (e.g., amount of deck coaming installed), and benefits realized (e.g., volume of oil spilled that is averted from entering the environment by the rule specifically).
The affected vessel and spill incident data recorded historically by USCG, however, does not reflect the baseline condition, but rather reflects the world with the IFR in effect.  In other words, the recorded number of affected vessels and the number and volume of affected oil spills already reflect the DRE measures put in place as a result of the IFR.  Because the baseline scenario is unobservable, we do not have data that allow us to directly characterize the baseline condition since the time the IFR went into effect.
As a result, in Chapters 3 and 4, we first process, analyze, and present the actual level of vessel and oil spill activity with the IFR in effect.  To narrow down which vessel and oil spill incident statistics we are most interested in characterizing for the baseline condition, and how we might calculate them, we reviewed the methodology of the 1993 RIA.  Our review indicates, most importantly, that the rule's primary benefit is to reduce the volume of oil spilled into the environment once a spill occurs.  In other words, the rule is not intended to reduce the absolute number of spill incidents, but the volume that these incidents released into the environment once they occur.  In addition, the costs of the rule will result in the same number of affected vessels.  They operate with or without the rule.  Finally, our review indicates that the incremental costs for all of the final rule's provisions to be finalized are based on the number of affected vessels (e.g., the number of deck spill equipment kits required) or the number of affected spills (e.g., the frequency at which deck spill equipment is used and replaced) but not on spill volume.  As a result, the actual number of affected vessels and spills (i.e., with the IFR in effect), as reflected in the USCG-recorded data, would not be different from the baseline condition and are therefore appropriate for estimating the rule's updated costs (Chapter 5).
The realized benefits of the final rule, however, are based on the incremental reduction in the volume of oil spilled into the environment from the baseline condition.  As described in Chapter 6, we therefore estimate retrospectively the baseline spill volumes using the assumptions developed in the 1993 RIA (e.g., the rule's effectiveness in reducing oil spill volume and the baseline compliance rates of affected vessels) and adjusting the historical data recorded by USCG (reflecting the actual volume of spills with the IFR in effect).
1.7.1  Overview of Sources
Throughout this analysis, we discuss the available information, data, and sources we researched and used to analyze the impacts of this final rule.  We first searched the federal docket (Docket No. USCG-2011-0430) for any public comment that had been submitted in response to the March 27, 2012 NOI.  We found that there was only one public comment submitted in response to the NOI, which expressed support for the final rule but requested that USCG add requirements for training the crew in the proper and expeditious use of DRE.
We communicated with commercial vendors, suppliers, and providers of DRE, coamings, and damage stability programs to elicit cost and benefit information.  We then conducted literature searches and reviewed available information on the past and projected future trends in the transport of oil by vessel and the number and amount of oil carrying vessels and oil spills that the rule may affect.  We also used USCG data sets (including the Coast Guard's Marine Information for Safety and Law Enforcement, MISLE, database) regarding the specific vessels, businesses (e.g., vessel owners and operators), and oil spill events potentially affected by the rule In summary, our sources include, but are not limited to:
   * The 1993 RIA for the DRE IFR;
   * Cost and benefit information provided by commercial vendors, suppliers, and providers of DRE, coamings, and damage stability programs;
   * Publicly-available and government data and information relating to the past trends in marine oil transport and the number and amount of oil carrying vessels and oil spills potentially affected by the rule [e.g., U.S. Department of Transportation (USDOT) Bureau of Transportation Statistics (BTS), USDOT Maritime Administration (MARAD), and the U.S. Energy Information Administration (EIA)]; and
   * USCG reports and data relating to the specific vessels, businesses (e.g., vessel owners and operators), and oil spill incidents that may be affected by the rule, including data on the domestic and foreign vessels known to carry oil in U.S. waters, information on spill incidents from 1993 through 2012 extracted from USCG's information systems, and the USCG Office of Investigations & Compliance Analysis (CG-INV) report Polluting Incidents In and Around U.S. Waters, A Spill/Release Compendium:  1969-2011 (December 2012) ("2012 USCG compendium report").

1.8  Organization of the RA
This RA provides an updated analysis of the requirements of the 1993 IFR on industry over the past 22 years.  The updated analysis includes the costs, benefits, and other economic impacts associated with implementing the 1993 IFR for Discharge Removal Equipment.  The following summarizes the chapters of the RA:
         *      Chapter 2: Overview of the DRE Interim Rule and the 1993 RIA;
         *      Chapter 3: Population Affected;
         *      Chapter 4: Oil Spill Incident Data;
         *      Chapter 5: Cost;
         *      Chapter 6: Benefits; and
Given that the IFR was published on an interim basis in 1993 and has been in effect since January 21, 1994, we provide an updated analysis of the costs and benefits looking back to calendar year 1994 (Year 1) from the present.  We estimate the costs and benefits retrospectively on an annual basis for 23- year period from 1994 through 2016 for the RIA Duplicative example. We summarize and present the costs and benefits estimated over the time period:

2.0  Overview of the 1993 DRE Interim Final Rule and the Supporting Regulatory Analysis
As discussed in Chapter 1, USCG issued the DRE rule on an interim basis in 1993.  The accompanying 1993 RIA, prepared by the U.S. Department of Transportation's Volpe National Transportation Systems Center, estimated the interim rule's potential costs and benefits.  In addition, the 1993 RIA evaluated a number of regulatory alternatives that the USCG was considering at the time (e.g., USCG was considering exempting certain types of vessels from some of the equipment requirements).
As published in the Federal Register, the IFR requirements apply to "all vessels carrying oil in bulk as cargo or cargo residue that are certificated as tank vessels under 46 CFR Chapter I, Subchapter D; all other certificated vessels that are permitted to carry limited quantities of oil, as defined in Section 311(a)(1) of the Federal Water Pollution Control Act (FWPCA, 33 U.S.C. 1321(j)); and uninspected vessels, including foreign flag vessels, that carry oil in bulk as cargo or cargo residue" that are operating on the navigable waters of the United States.  The 1993 RIA identified and categorized these affected vessel types into the following four main vessel categories:
   1. Oil tankers;
   2. Offshore oil barges (also known as coastal tank or offshore tank barges);
   3. Inland oil barges; and
   4. Secondary cargo vessels (e.g., offshore vessels, utility boats, tow boats, and fishing vessels that carry significant quantities of oil for delivery to other vessels or installations).
The IFR requirements vary by each of these vessel categories.  In addition, the 1993 RIA assumed that a proportion of the affected vessel population was already complying with the rule's requirements for coaming and deck spill equipment because the industry had already been complying with Section 155.310 to minimize the monetary costs associated with oil spill pollution.  This assumption is important when estimating the costs and benefits associated with complying with the rule; if the equipment already exists on a particular vessel, then there is no cost incurred or benefit accrued as a result of the rule.  As presented earlier, Exhibit 2-1 summarizes the key provisions of the IFR as published in the Federal Register, the additional regulatory alternatives evaluated in the 1993 RIA, and the level of baseline compliance assumed in the 1993 RIA.
TABLE 2-1.  Summary of the Interim Final Rule's Key Provisions, and Regulatory Alternatives Evaluated and Baseline Compliance Level Assumed in the RIA
                               IFR KEY PROVISION
                                 (58 FR 67988)
                                  OIL TANKERS
                           LARGE OFFSHORE OIL BARGES
                             (LENGTH > 400 FT)
                           SMALL OFFSHORE OIL BARGES
                             (LENGTH < 400 FT)
                               INLAND OIL BARGES
                               SECONDARY VESSELS
                        1993 RIA ALTERNATIVES EVALUATED
Deck coaming (33 CFR 155.310)

(100% already comply)

                             (100% already comply)

                             (50% already comply)

                             (50% already comply)
                                 Not required
Assumed that offshore and inland oil barges carrying "clean product" (i.e., non-persistent, more volatile petroleum products) are exempt due to safety concerns.
As an alternative, inland oil barges carrying "dirty product" (e.g., crude oil) are also exempt.
Deck spill equipment (33 CFR 155.205 through 155.220)

                             (100% already comply)

                             (100% already comply)

                             (50% already comply)

                             (50% already comply)

                             (50% already comply)

Internal cargo transfer capability  -  hoses and couplings (33 CFR 155.225)

                              (0% already comply)

                              (0% already comply)

                              (0% already comply)
                                 Not required
                                 Not required
For tankers> 700 ft loa
Emergency towing capability (33 CFR 155.230 and 155.235)
      2-1
                              (0% already comply)

                              (0% already comply)

                              (0% already comply)
                                 Not required
                                 Not required
This provision was replaced by separate rulemakings (1).
Damage stability information (33 CFR 155.240 and 155.245)

                              (0% already comply)

                              (0% already comply)

                              (0% already comply)

                              (0% already comply)
                                 Not required

Sources:  Interim final rule (58 FR 67988, December 22, 1993), 1993 RIA

Notes:
(1) According to the March 27, 2012 NOI, the requirement for emergency towing capability on board tankers and barges had been replaced by separate rulemakings in 1997, 2000, and 2009 (77 FR 18154, March 27, 2012).  As a result, this analysis does not evaluate or update the impacts associated with this requirement.

The 1993 RIA also evaluated a proposed alternative requiring "warehoused equipment" (e.g., booms, skimmers, and temporary storage devices) to facilitate the containment and removal of oil from the water and shorelines.  The IFR did not promulgate this requirement and sought further public comment for consideration.  The March 2012 NOI stated that the USCG eventually determined that requiring vessels to carry such equipment onboard was economically, environmentally, and technologically unfeasible and believed that shore-based equipment is the preferred method for responding to actual or potential on-water oil spills (77 FR 18156, March 27, 2012).  As a result, this analysis does not evaluate or update the impacts associated with this proposed requirement.

In Section 2.1, we discuss each of the following four remaining provisions of the rule that we analyze for the final rulemaking.  In Section 2.2, we provide a summary of the methodology, data, and results of the 1993 RIA for reference.

2.1  DRE Rule's Key Provisions Evaluated in This Analysis
Our updated analysis therefore evaluates those impacts associated with the remaining four IFR provisions.  USCG has indicated that, for purposes of this updated analysis, we are not considering changing or adding new requirements in the final rule.  We briefly discuss each of the remaining IFR provisions below.

2.1.1  Deck Coaming
Deck spills may be contained by installing coamings along the perimeter of the vessel, and installing coamings, fixed containers, or other enclosures (e.g., containment troughs) around cargo hatches, loading manifolds, and transfer connection points.  The IFR requires, by January 21, 1997, that oil tankers and offshore oil barges with a cargo capacity of 250 or more barrels have peripheral coamings, including port and starboard coamings and forward and aft athwartships coamings, that completely enclose the cargo deck area, cargo hatches, manifolds, transfer connection points, and any other openings where cargo may overflow or leak.  Within each coaming, the IFR requires a fixed or portable container that holds at least one-half barrel under each oil loading manifold and each oil transfer connection, a mechanical means of closing each drain and scupper, and a means of draining or removing discharged oil from the fixed or portable container and from within the coamings without discharging the oil into the water.  For inland oil barges with a cargo capacity of 250 or more barrels, the IFR provides the option to choose between:  1) a new requirement for coaming around cargo hatches, loading manifolds, and transfer connections, or 2) the pre-existing requirement for fixed containers and deck enclosures around the same areas.
As shown in Table 2-1, the 1993 RIA assumed that all oil tankers and large offshore oil barges (vessels equal to or greater than 400 feet in length) already comply with this requirement, whereas 50 percent of small offshore oil barges (vessels less than 400 feet in length) and inland oil barges already comply.  This requirement does not apply to secondary vessels.  While the 1993 RIA also assumed that inland oil barges carrying "clean product" (i.e., non-persistent, more volatile petroleum products) are exempt due to safety concerns, the actual IFR did not exempt them as discussed above.  We correct that analytical error herein.  Under the IFR, these vessels are not exempt.

2.1.2  Deck Spill Equipment
The oil retained on deck by the coamings could then be piped to a slop or other tank via deck drains or portable pumps.  Sufficient cleanup equipment and materials must be provided to the crew to remove the oil or oil residue that remains on the deck.  The IFR required oil tankers, offshore and inland oil barges, and secondary vessels to carry the appropriate equipment and supplies for the containment and removal of on-deck oil cargo spills by June 20, 1994.  The equipment and supplies must include sorbents; non-sparking hand scoops, shovels and buckets; containers suitable for holding recovered waste; emulsifiers for deck cleaning; and protective clothing.  For oil tankers and offshore oil barges, additional equipment required by the IFR includes a minimum of one non-sparking portable pump with hoses and scupper plugs.  The equipment and supplies must be ready for immediate use during cargo transfer operations.
The spill containment and equipment capacity varies by vessel type and length:  12 barrels for oil tankers and offshore oil barges 400 feet or greater in length, 7 barrels for oil tankers and offshore oil barges less than 400 feet in length, one barrel for inland oil barges, and one-half barrel for secondary vessels.
As shown in Table 2-1, the 1993 RIA assumed that all oil tankers and large offshore oil barges (vessels equal to or greater than 400 feet in length) already comply with this requirement, whereas 50 percent of small offshore oil barges (vessels less than 400 feet in length), inland oil barges, and secondary vessels already comply.

2.1.3  Internal Cargo Transfer Capability
This IFR requirement provides the capability to move cargo from a ruptured or breached tank to an intact cargo or segregated ballast tank on board or to a lightering vessel alongside.  More specifically, the IFR requires oil tankers and offshore oil barges to carry suitable hoses and reducers for internal transfer of cargo to tanks or other spaces within the cargo block by June 20, 1994, unless the vessel's installed cargo piping system is capable of performing this function.
As shown in Table 2-1, the 1993 RIA assumed that none of the affected oil tankers and offshore oil barges already carried the required equipment prior to implementation of the IFR.  The RIA also evaluated an alternative where oil tankers would also be required to carry hydraulically powered submersible pump kits; however, in the IFR, the USCG determined that requiring such equipment was not economically feasible and may be incompatible with safe vessel operation if the pumps are used before adequate stability information is available.

2.1.4  Damage Stability Information
This requirement provides for quick damage stability, loading, and residual structural strength calculation capability to facilitate safe, non-polluting salvage and cargo transfer operations.  For oil tankers and offshore oil barges, the IFR required owners or operators to have prearranged, prompt access to computerized, shore-based damage stability and residual strength calculation programs for their vessels no later than January 21, 1995.  These shore-based calculation programs must be available for access 24 hours a day and have vessel baseline strength and stability characteristic data pre-entered.  For inland oil barges, the IFR requires owners and operators to maintain 24-hour access to vessel plans at a shore-based location for necessary salvage, stability, and residual hull strength assessments.
As shown in Table 2-1, the 1993 RIA assumed that none of the affected oil tankers, offshore oil barges, and inland oil barges already engaged in these capabilities prior to implementation of the IFR.

2.2  Summary of 1993 RIA Methodology, Data, and Results
The 1993 RIA estimated the direct costs to vessel owners and operators to comply with the rule's requirements on the basis of the projected number of affected vessels over a 23-year period, 1994 through 2016, and available equipment unit cost information.  Certain assumptions were made with respect to the length of coaming and transfer hose required for a given vessel size, the frequency at which deck spill equipment and transfer hoses would have to be replaced, and as discussed in Section 2.1, the proportion of the affected vessel population that was already complying with the requirements.  The costs were calculated on a present value basis using a discount rate of 7 percent.
The 1993 RIA estimated the benefits of the rule on the basis of the volume of spilled oil that would be prevented from entering the water by DRE.  The volume of oil that would be prevented from entering the water was based on projections of historical spill data that reflected: (1) oil shipment forecast information; and (2) analysis of representative spill incidents to estimate the effectiveness of DRE.  The benefits were quantified in terms of barrels of oil not lost to the environment, on a present value basis assuming a discount rate of 7 percent.
For reference, Table 2-2 summarizes the costs and benefits estimated by the 1993 RIA.

Table 2-2.  Summary of Costs and Benefits Estimated by the 1993 RIA, 1993 dollars
                               IFR KEY PROVISION
                                 (58 FR 67988)
                                ESTIMATED COSTS
                              (PRESENT VALUE, 7%)
                              ESTIMATED BENEFITS
                              (PRESENT VALUE, 7%)
                             NOTES AND ASSUMPTIONS
Deck coaming and spill equipment (1)
Offshore oil barges:  $1.65 million
Inland oil barges:  $4.51 million
Secondary vessels:  $4.84 million

Total:  $11.0 million

Annualized:  $0.11 million (was calculated only for offshore oil barges)
Offshore oil barges:  149.4 barrels
Inland barges:  11.8 barrels
Secondary vessels:  236.4 barrels

Total:  397 barrels

Assumed inland barges were exempt from the coaming requirement.
Internal cargo transfer capability  -  hoses and couplings
Tankers:  $91.33 million
Offshore oil barges:  $8.92 million

Total:  $100.25 million

Annualized:  $7.37 million (tankers), $0.72 million (offshore oil barges)
Tankers:  6,700 barrels
Offshore oil barges:  840 barrels

Total:  7,544 barrels

If submersible pump kits are also required for tankers, the estimated tanker cost and benefit increases to $449.31 million and 28,346 barrels, respectively
Damage stability information (2)
Tankers:  $6.89 million
Offshore oil barges:  $0.79 million
Inland oil barges:  NA
Total:  $7.68 million
Annualized:  $0.56 million (tankers), $0.07 million (offshore oil barges), NA (inland oil barges)
Not quantifiable
The 1993 RIA reported that "no data exists to quantify the gains from rapid salvage planning services."
Sources:  Interim final rule (58 FR 67988, December 22, 1993), 1993 RIA

Notes:
(1) The costs and benefits for deck coaming and deck spill equipment were not reported separately.  Costs and benefits to tankers for deck coaming and spill equipment were not estimated because the 1993 RIA assumed that these vessels were already compliant.
(2) The 1993 RIA did not estimate costs to inland oil barges for the damage stability information requirement.

3.0  Affected Population
In this chapter, we estimate the number of oil carrying vessels with the final rule in effect based on the 1993 RIA expectations.  As discussed in Chapter 1, these vessel estimates do not change in the absence of the rule (baseline scenario) and are therefore appropriate to use in Chapter 5 to estimate the compliance costs associated with each of the rule's requirements.  USCG provided data that specifically identified the vessels that are likely to have been affected since the interim rule was issued.  We conduct additional screening and analysis on these data to categorize these vessels based on type (e.g., oil tanker or oil barge), operating location (e.g., offshore oil barge or inland oil barge), and size (e.g., large or small offshore oil barge).

3.1  Updated Period of Analysis
We estimate the number of vessels as an update, by each of the vessel types affected by the final rule (oil tankers, offshore oil barges, inland barges, and secondary vessels), from 1994, when the IFR became in effect, through the year 2016.  For the years 1994 through 2012, we use data from USCG data bases (e.g. MISLE and various consolidated NPFC pollution data bases) to estimate, retrospectively, the number of vessels that were likely to have been affected since the interim rule was issued.  For the years 2013 through 2016, we research available forecast data and information relating to the marine transport of oil for insight into how the number of affected vessels may be estimated.

3.1.1  Estimating the Number of Vessels Likely Affected by the Final Rule from 1994 through 2012 (Update)
To estimate the number of vessels that are likely to have been affected from the time the IFR was in effect (1994 through the end of 2012).  We use vessel data recorded by our databases.  We provided the following two vessel data sets:
   1. A data set that lists 7,371 unique domestic vessels (U.S.-flag) known to have carried oil on U.S.  waters, with known build dates ranging from 1896 through 2012; and
   2. A data set that lists 3,716 unique foreign vessels known to have carried oil on U.S. waters, with known build dates ranging from 1942 through 2012.
These data sets contain data and information for each vessel listed, including vessel ID and name; flag (e.g., "US" or some other country); managing owner; route type (e.g., "Oceans," "Coastwise," "Great Lakes," "Rivers"); classification society; cargo authorization type; inspection subchapter type (in accordance with the 46 CFR); vessel class, type, subtype, and service; tonnage, length, breadth, and depth; and build year.  We reviewed these data sets and found, however, that they included vessels that are likely not affected by the rule and vessels that are likely no longer active or operational.  In addition, some vessels are missing data elements that are important to our analysis (e.g., vessel width or breadth to estimate the amount of deck coaming required by the rule).  As a result, we conducted additional screening and analysis to estimate the number of vessels affected by the rule as of its effective date (January 1994), by vessel type, and assign data in instances where data are missing.  Table 3-1 summarizes the steps we implemented.

Table 3-1.  Summary of Steps Taken to Screen and Analyze USCG vessel Data
                                     STEP
                               DOMESTIC VESSELS
                                FOREIGN VESSELS
Original data
7,371 unique vessels with known build dates ranging from 1896 through 2012
3,716 unique vessels with known build dates ranging from 1942 through 2012
   1. Remove vessels that likely do not carry oil or petroleum product
168
458
   2. Remove vessels that likely ceased operation prior to 1994 (assumes 30-year maximum lifespan)
4,296
2,131
Estimated number of active vessels as of January 1, 1994 (or at year-end 1993).
2,907
1,127
   3. Group active vessels by vessel type and length

   Estimate missing width/breadth values
Oil tankers:  57
Large offshore oil barges, length > 400 ft:  39
Small offshore oil barges, length < 400 ft:  179
Inland oil barges:  2,419
Secondary vessels:  213
Oil tankers:  1,058
Large offshore oil barges, length > 400 ft:  18
Small offshore oil barges, length < 400 ft:  51
Inland oil barges:  0
Secondary vessels:  0
   4.    Estimate the number of affected, actively-operating vessels for each of the years 1994 through 2012 (at year-end) using the build dates provided in the data sets and assuming a 30-year maximum lifespan for vessels built in 1964 and beyond
By adding 492 new vessels, the total  active vessels as of year-end 2012  is 3,399
By adding 1,522new vessels, the total   active vessels as of year-end 2012, is 2,649
Source: USCG Analysis

   1.    We first identify and remove from further consideration those vessels that are likely not affected by the rule.  These vessels include 168 domestic and 458 foreign vessels that are listed as carrying liquid chemical or gas (e.g., liquefied petroleum gas, liquefied natural gas, or anhydrous ammonia) cargo, as opposed to oil or petroleum product.
   2.    We next identify and remove from further consideration those vessels that are likely no longer active or operational.  Although the domestic vessel data set contained a data field indicating whether vessels are active or not (`vessel_status_type_id'), many of these reportedly active vessels had been built in the early 20[th] century and are likely no longer active.   The domestic and foreign vessel data sets contain vessels that were built as early as 1896 and 1942, respectively.  To determine which of the listed vessels are likely no longer active, we conducted a literature search and review to research information and data about the typical lifespan of vessels.  We found three information sources that suggest that the maximum lifespan of tanker and tank barges is approximately 30 years:
   * A 2004 thesis from the Massachusetts Institute of Technology on the dynamics of the oil tanker industry presented the age profile of the 1996, 1999, 2001, and 2003 tanker fleet, which shows that the maximum lifespan of tankers has consistently been around 30 years.
   * Data provided by the USDOT MARAD shows the years in which tankers and tank barges in the U.S. domestic petroleum trades were built and subsequently removed from or retrofitted for service due to regulations prompted by the Oil Pollution Act of 1990 (OPA 1990) (e.g., double-hull requirements).  Our analysis shows that these vessels were removed or retrofitted after about 30 years of operation, on average, with little variation among the vessel types; and
   * Finally, a 2011 USDOT MARAD report on the coastal tank vessel market presented the age profile for the 2011 tanker and tank barge fleets, which shows that a very small number of vessels (less than 5) had been built prior to 1981 and most vessels had been built from 2002 through 2010.  In addition, the report states that in 2010, product tankers less than 10 years old accounted for 75 percent of fleet capacity and 86 percent of fleet ton-miles and tank barges less than 10 years old accounted for 67 percent of fleet capacity and 72 percent of fleet ton-miles.
   Based on the literature discussed above, we assume a maximum vessel lifespan of 30 years (e.g., those vessels built in 1960 are retired in 1990).  By applying this assumption to the build dates provided for each of the vessels listed in the domestic and foreign vessel data sets, we estimate, retrospectively, 2,907 domestic and 1,127 foreign vessels that were active or operational as of January 1994, when the IFR was made effective.
   3.    Based on MISLE data, we researched active vessels by size, and type, based on ITC and route type, to obtain a population of foreign oil tankers and offshore oil barges.  Type would categorize vessels by their operating location (e.g., offshore oil barge or inland oil barge).  All of the listed foreign vessels are either offshore oil tankers or offshore oil barges.
   We also assigned estimated widths or breadths to those vessels that are missing such data, especially for those vessels that were active as of the effective date of the IFR, January 21, 1994.  Since length data is provided for each listed vessel, we correlate vessel width and length to approximate the widths for those vessels missing width data.  For the small offshore barges (less than 400 feet in length), we assign width values to two domestic vessels and all foreign vessels based on a correlation between vessel width and length for the remaining domestic vessels.   For the domestic inland barges, however, width data are not well populated and the correlation between vessel width and length is not as strong as the offshore barges.  As a result, we apply the average width per vessel calculated for those vessels with width data (average of 42.9 feet wide).
   4.    Finally, we continue to estimate, as an update, the number of actively-operating, affected vessels for each of the years 1994 through 2012 (at year-end).  For each of these years, we add "new" vessels that are being built as reported by the USCG data sets, and "retire" older vessels assuming a 30-year maximum lifespan (e.g., for the year 1994, those vessels built in 1964 are retired).  Table 3-2 presents our estimated number of affected vessels for each year, by vessel type and size (length).  For each year, we present the estimated numbers of newly built vessels, retired vessels, and actively operating vessels (by year-end).  For a given year, the numbers of newly built vessels and retired vessels are added and subtracted, respectively, from the number of active vessels estimated in the preceding year to estimate the number of active vessels by year-end.
   AS SHOWN IN TABLE 3-2A, we estimated that the number of the smallest oil tankers (less than 400 feet in length) decreased from about 300 active vessels in the 1990s to about 240 active vessels by 2012.  On the other hand, we estimated that the number of the larger oil tankers (equal to or greater than 400 feet in length) is about three times greater by 2012 than in 1993.  For a given year, the estimated number of active oil barges fluctuates between 180 and 240 small offshore oil barges (less than 400 feet in length), 60 and 70 large offshore oil barges (equal to or greater than 400 feet in length), and 2,300 and 2,500 inland barges (See Table 3-2C).  Finally, we estimate about three times as many secondary vessels operating in 2012 than in 1993.

Table 3-2A	Estimated Updated Number of Oil Tankers Affected by the Final Rule, and Size (length), 1994 - 2012
YEAR
                           OIL TANKERS, L<400 FT
                          OIL TANKERS, 400 TO 700 FT
                           OIL TANKERS, L>700 FT

                                    NEW (1)
                                  RETIRED (2)
                                  ACTIVE (3)
                                    NEW (1)
                                  RETIRED (2)
                                  ACTIVE (3)
                                    NEW (1)
                                  RETIRED (2)
                                  ACTIVE (3)
1994
                                                                            10
                                                                           -
                                                                           288
                                                                            11
                                                                             3
                                                                           446
                                                                            22
                                                                             2
                                                                           419
1995
                                                                             8
                                                                             1
                                                                           295
                                                                            21
                                                                             1
                                                                           466
                                                                            25
                                                                             1
                                                                           443
1996
                                                                             7
                                                                             3
                                                                           299
                                                                            37
                                                                             1
                                                                           502
                                                                            25
                                                                           -
                                                                           468
1997
                                                                             7
                                                                             1
                                                                           305
                                                                            21
                                                                           -
                                                                           523
                                                                            25
                                                                           -
                                                                           493
1998
                                                                             5
                                                                             1
                                                                           309
                                                                            37
                                                                             7
                                                                           553
                                                                            51
                                                                           -
                                                                           544
1999
                                                                             3
                                                                             3
                                                                           309
                                                                            47
                                                                             1
                                                                           599
                                                                            54
                                                                           -
                                                                           598
2000
                                                                             3
                                                                             3
                                                                           309
                                                                            42
                                                                             4
                                                                           637
                                                                            55
                                                                             2
                                                                           651
2001
                                                                             4
                                                                             9
                                                                           304
                                                                            37
                                                                             5
                                                                           669
                                                                            38
                                                                             3
                                                                           686
2002
                                                                             4
                                                                             8
                                                                           300
                                                                            54
                                                                             5
                                                                           718
                                                                            68
                                                                             7
                                                                           747
2003
                                                                             5
                                                                             7
                                                                           298
                                                                            78
                                                                            13
                                                                           783
                                                                           105
                                                                             9
                                                                           843
2004
                                                                             6
                                                                            12
                                                                           292
                                                                           100
                                                                            17
                                                                           866
                                                                            93
                                                                            17
                                                                           919
2005
                                                                             6
                                                                            11
                                                                           287
                                                                            92
                                                                            14
                                                                           944
                                                                            82
                                                                            28
                                                                           973
2006
                                                                             7
                                                                            10
                                                                           284
                                                                           103
                                                                            15
                                                                         1,032
                                                                            68
                                                                            18
                                                                         1,023
2007
                                                                             9
                                                                            11
                                                                           282
                                                                            86
                                                                            12
                                                                         1,106
                                                                            77
                                                                            12
                                                                         1,088
2008
                                                                             6
                                                                            16
                                                                           272
                                                                           101
                                                                            10
                                                                         1,197
                                                                            59
                                                                            13
                                                                         1,134
2009
                                                                             4
                                                                            10
                                                                           266
                                                                            74
                                                                             8
                                                                         1,263
                                                                            67
                                                                            18
                                                                         1,183
2010
                                                                             4
                                                                            18
                                                                           252
                                                                            46
                                                                            18
                                                                         1,291
                                                                            28
                                                                            12
                                                                         1,199
2011
                                                                             2
                                                                            11
                                                                           243
                                                                            17
                                                                            27
                                                                         1,281
                                                                            29
                                                                            23
                                                                         1,205
2012
                                                                             2
                                                                             8
                                                                           237
                                                                             4
                                                                            31
                                                                         1,254
                                                                             7
                                                                            12
                                                                         1,200
Sources:  USCG
Notes:
(1) The estimated number of new vessels is based on build date data provided in USCG vessel data sets.
(2) The estimated number of retired vessels is based on assuming a maximum vessel lifespan of 30 years.
(3) For each year, the numbers of newly built vessels and retired vessels are added and subtracted, respectively, from the number of active vessels estimated in the preceding year to estimate the number of active vessels by year-end.
3-2a, 2b5,
Table 3-2B.  Estimated Updated Number of Offshore Barges Affected by the Rule, and Size (length), 1994 - 2012
YEAR
                       OFFSHORE OIL BARGES, L<400 FT
                        OFFSHORE OIL BARGES, L> 400

                                    NEW (1)
                                  RETIRED (2)
                                  ACTIVE (3)
                                    NEW (1)
                                  RETIRED (2)
                                  ACTIVE (3)
1994
                                                                             3
                                                                             4
                                                                           229
                                                                           -
                                                                           -
                                                                            57
1995
                                                                             2
                                                                             5
                                                                           226
                                                                             3
                                                                           -
                                                                            60
1996
                                                                             3
                                                                            15
                                                                           214
                                                                             1
                                                                           -
                                                                            61
1997
                                                                           -
                                                                             6
                                                                           208
                                                                             2
                                                                           -
                                                                            63
1998
                                                                           -
                                                                             6
                                                                           202
                                                                             1
                                                                           -
                                                                            64
1999
                                                                             2
                                                                            12
                                                                           192
                                                                             2
                                                                             3
                                                                            63
2000
                                                                             3
                                                                            14
                                                                           181
                                                                           -
                                                                             4
                                                                            59
2001
                                                                             4
                                                                             8
                                                                           177
                                                                           -
                                                                             4
                                                                            55
2002
                                                                             8
                                                                             4
                                                                           181
                                                                             6
                                                                             2
                                                                            59
2003
                                                                             9
                                                                             5
                                                                           185
                                                                             3
                                                                             1
                                                                            61
2004
                                                                            10
                                                                             4
                                                                           191
                                                                             4
                                                                             2
                                                                            63
2005
                                                                            13
                                                                             6
                                                                           198
                                                                             3
                                                                             3
                                                                            63
2006
                                                                            16
                                                                             8
                                                                           206
                                                                             4
                                                                             4
                                                                            63
2007
                                                                            18
                                                                             6
                                                                           218
                                                                             6
                                                                           -
                                                                            69
2008
                                                                            20
                                                                             7
                                                                           231
                                                                             4
                                                                             2
                                                                            71
2009
                                                                            19
                                                                             6
                                                                           244
                                                                             4
                                                                             6
                                                                            69
2010
                                                                            16
                                                                            18
                                                                           242
                                                                             4
                                                                             3
                                                                            70
2011
                                                                            12
                                                                            15
                                                                           239
                                                                             3
                                                                            10
                                                                            63
2012
                                                                           -
                                                                            12
                                                                           227
                                                                           -
                                                                             6
                                                                            57
Sources:  USCG
Notes:
(1) The estimated number of new vessels is based on build date data provided in USCG vessel data sets.
(2) The estimated number of retired vessels is based on assuming a maximum vessel lifespan of 30 years.
(3) For each year, the numbers of newly built vessels and retired vessels are added and subtracted, respectively, from the number of active vessels estimated in the preceding year to estimate the number of active vessels by year-end.

Table 3-2C.  Estimated Updated Number of Inland Barges and Secondary Vessels Affected by the Rule by Vessel Type 1994 - 2012
YEAR
                               INLAND OIL BARGES
                               SECONDARY VESSELS

                                    NEW (1)
                                  RETIRED (2)
                                  ACTIVE (3)
                                    NEW (1)
                                  RETIRED (2)
                                  ACTIVE (3)
1994
                                                                            59
                                                                            87
                                                                         2,391
                                                                             1
                                                                             1
                                                                           213
1995
                                                                           105
                                                                            80
                                                                         2,416
                                                                             1
                                                                             2
                                                                           212
1996
                                                                           128
                                                                           105
                                                                         2,439
                                                                             1
                                                                             6
                                                                           207
1997
                                                                            87
                                                                           134
                                                                         2,392
                                                                            17
                                                                             8
                                                                           216
1998
                                                                            81
                                                                           152
                                                                         2,321
                                                                            41
                                                                             8
                                                                           249
1999
                                                                            94
                                                                           124
                                                                         2,291
                                                                            45
                                                                             1
                                                                           293
2000
                                                                            86
                                                                           107
                                                                         2,270
                                                                            21
                                                                             6
                                                                           308
2001
                                                                           103
                                                                            95
                                                                         2,278
                                                                            24
                                                                             3
                                                                           329
2002
                                                                            82
                                                                            73
                                                                         2,287
                                                                            31
                                                                           -
                                                                           360
2003
                                                                            89
                                                                            97
                                                                         2,279
                                                                            20
                                                                             7
                                                                           373
2004
                                                                           112
                                                                           122
                                                                         2,269
                                                                            28
                                                                             3
                                                                           398
2005
                                                                           154
                                                                           119
                                                                         2,304
                                                                            22
                                                                             4
                                                                           416
2006
                                                                           105
                                                                            97
                                                                         2,312
                                                                            24
                                                                             3
                                                                           437
2007
                                                                           157
                                                                            83
                                                                         2,386
                                                                            46
                                                                             5
                                                                           478
2008
                                                                           220
                                                                            94
                                                                         2,512
                                                                            44
                                                                             4
                                                                           518
2009
                                                                           165
                                                                           100
                                                                         2,577
                                                                            46
                                                                             7
                                                                           557
2010
                                                                           121
                                                                           208
                                                                         2,490
                                                                            30
                                                                             4
                                                                           583
2011
                                                                           161
                                                                           151
                                                                         2,500
                                                                            14
                                                                            10
                                                                           587
2012
                                                                            45
                                                                            49
                                                                         2,496