----------------------------------------------------------------------------------------------------------------
                                                                   Average cost     Compliance        Annual
      Industry code            Industry name         Employees     per affected    rate (%) low/    compliance
                                                   affected (%)      employee          high            costs
----------------------------------------------------------------------------------------------------------------
NAICS 234910.............  Water, Sewer, and                   1            $690               0         $11,583
                            Pipeline
                            Construction.
NAICS 234920.............  Power and                           1             690               0         318,999
                            Communication
                            Transmission Line
                            Construction.
NAICS 234930.............  Industrial                          0  ..............  ..............               0
                            Nonbuilding
                            Structure
                            Construction.
NAICS 234990.............  All Other Heavy                     1             772               0          71,053
                            Construction.
NAICS 235310.............  Electrical                          1             700               0         140,144
                            Contractors.

NAICS 235910.............  Structural Steel                    0  ..............  ..............               0
                            Erection Contractors.
NAICS 235950.............  Building Equipment                  0  ..............  ..............               0
                            and Other Machine
                            Installation
                            Contractors.
NAICS 235990.............  All Other Special                   0  ..............  ..............               0
                            Trade Contractors.
NAICS 221110.............  Electric Power                      0  ..............  ..............               0
                            Generation.
NAICS 221120.............  Electric Power                      0  ..............  ..............               0
                            Transmission,
                            Control, and
                            Distribution.
NAICS 2211...............  Publicly Owned                      0  ..............  ..............               0
                            Utilities.
Various..................  Industrial Power                    0  ..............  ..............               0
                            Generators.
SIC 0783.................  Ornamental Shrub and                0  ..............  ..............               0
                            Tree Services.
                                                 -----------------
    Total................  .....................  ..............  ..............  ..............        541,779
----------------------------------------------------------------------------------------------------------------
Source: CONSAD [1], Table 5.3; CONSAD [2], Appendix C, pages 9-10; OSHA estimates.

Costs To Comply With Existing 29 CFR 1910.269 (Other Than Training) for
Employees Not Already Covered by 29 CFR 1910.269
    As described earlier, OSHA believes that construction contractors
who perform work involving electric power generation, transmission, or
distribution generally comply with the requirements of the OSHA general
industry standard 29 CFR 1910.269. Nevertheless, for purposes of
estimating the potential costs of compliance associated with this
rulemaking, costs associated with complying with existing requirements
in 29 CFR 1910.269 were estimated for some construction establishments.
For purposes of calculating a cost estimate, OSHA estimates that the
equivalent of 5 percent of the work force in several construction
industries currently are not provided with any of the additional safety
protections that were newly provided by the existing 29 CFR 1910.269
when that standard was updated by OSHA in 1994.
    Specifically, OSHA estimates that the compliance costs associated
with achieving full compliance with the requirements of the existing 29
CFR 1910.269 for the construction industry would be equivalent to that
represented by 5 percent of the relevant work force being out of
compliance with the requirements of the existing 29 CFR 1910.269 that
were newly introduced in general industry in 1994. The relevant work
force would be the affected employees in the following industries:
Water, Sewer, and Pipeline Construction; Power and Communication
Transmission Line Construction; All Other Heavy Construction; and
Electrical Contractors.
    The costs necessary to achieve full compliance with the relevant
nontraining requirements of 29 CFR 1910.269 were estimated based on
those associated with the final rule promulgated by OSHA in 1994. Many
of these requirements have become standard industry practice and thus
would no longer involve additional costs. Thus, the estimate of
compliance costs would allow for more widespread noncompliance among
other requirements, or for the incorporation of other aspects of
achieving compliance.
    The resources necessary to achieve compliance with the relevant
requirements were estimated to be represented by an average of $64 per
employee. This cost is equivalent to that associated with compliance
with the revised 29 CFR 1910.269, as supported by the public record
corresponding to the promulgation of that standard.
    The total estimated annual costs associated with achieving
compliance with the nontraining requirements of the existing 29 CFR
1910.269 for the construction industry was thus estimated to be
$157,000, as shown in Table V-12. Table V-12 also shows the costs of
compliance for each affected industry.

             Table V-12.--Costs To Comply With Existing 1910.269 (Other Than Training) for Employees Not Already Covered by Sec.   1910.269
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Average cost     Compliance      Annual
              Industry code                           Industry name                Employees       Employees     per affected    rate (%) low/  compliance
                                                                                affected (%)    affected (%)      employee          high          costs
---------------------------------------------------------------------------------------------------------------------------------------------- ------------
NAICS 234910............................  Water, Sewer, and Pipeline                         5             $64               0          $3,043
                                           Construction.
NAICS 234920............................  Power and Communication Transmission               5              64               0          83,773
                                           Line Construction.
NAICS 234930............................  Industrial Nonbuilding Structure                   0  ..............  ..............               0
                                           Construction.
NAICS 234990............................  All Other Heavy Construction........               5              64               0          17,834
NAICS 235310............................  Electrical Contractors..............               5              64               0          52,294
NAICS 235910............................  Structural Steel Erection                          0  ..............  ..............               0
                                           Contractors.
NAICS 235950............................  Building Equipment and Other Machine               0  ..............  ..............               0
                                           Installation Contractors.
NAICS 235990............................  All Other Special Trade Contractors.               0  ..............  ..............               0
NAICS 221110............................  Electric Power Generation...........               0  ..............  ..............               0
NAICS 221120............................  Electric Power Transmission,                       0  ..............  ..............               0
                                           Control, and Distribution.
NAICS 2211..............................  Publicly Owned Utilities............               0  ..............  ..............               0
Various.................................  Industrial Power Generators.........               0  ..............  ..............               0

SIC 0783................................  Ornamental Shrub and Tree Services..               0  ..............  ..............               0
                                                                               -----------------
    Total...............................  ....................................  ..............  ..............  ..............        156,944
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: OSHA, Office of Regulatory Analysis.

Annual Costs for Required Communications Between Host Employers and
Contractors
    The proposed revisions to the OSHA standards addressing electric
power generation, transmission, and distribution work would require
certain communications to take place between host employers and
contractors. These requirements would apply for each project that is
performed by a contractor for a host employer.
    Under the proposed standards, the host employer would be required
to provide to the contractor information on hazards that the contract
employer might not be able to recognize. However, the proposed
standards would not require the host employer to survey the work area
for hazards, and would not require the host employer to acquire
additional unknown information.
    The proposed standards would also require the host employer to
report to the contractor any violations of the applicable OSHA
standards that may happen to be observed by the host employer. This
requirement would not impose any additional costs on host employers or
on contractors to the extent that contractors are in compliance with
the applicable standards.
    Contractors are also required under the proposed standards to
inform the host employer about any unique hazards posed by the work of
the contractor, about any unexpected hazards found in the course of
performing the contracted work, and about the measures taken by the
contractor to correct violations reported by the host employer and the
measures taken to prevent such violations from recurring. These
communications are generally considered to be consistent with current
industry practices for projects involving contracted work on electric
power generation, transmission, and distribution systems.
    An estimated 2.7 million projects are performed by contractors for
host employers annually. Of these, about 1.3 million are performed by
contractors classified in the Power and Communication Transmission Line
Construction industry, and another 0.9 million are performed by
establishments classified in the Electrical Contractors industry. [2,
Appendix C, p. 1]
    Projects performed by the host employers themselves would not be
affected by the proposed new requirements. Also, projects for which
there is no host employer would not be affected by these requirements.
Host employer is defined in the proposal as ``[a]n employer who
operates and maintains'' an electric power system and who hires a
contract employer to perform work on the system. Furthermore, the
requirements do not apply to line-clearance tree trimmers. OSHA
requests comments regarding the scope and application of these
requirements, and regarding additional costs, if any, that would need
to be incurred by tree trimmers if they were to be covered by this
requirement.
    Some projects would be sufficiently small and straightforward to
preclude the need for any required communication. An estimated 50
percent of the projects performed by establishments with fewer than 20
employees would be unaffected by the proposed new communication
requirements. All projects performed by establishments with 20 or more
employees are considered affected by these requirements. [2, Appendix
C, p. 11-12]
    The costs associated with these provisions were estimated as
involving resources (including labor costs or other expenditures)
equivalent to 10 minutes of supervisory time each for the host employer
and for the contractor on affected projects involving establishments
with fewer than 20 employees, and resources equivalent to 15 minutes of
supervisory time each for the host employer and for the contractor on
affected projects involving establishments with 20 or more employees.
[2, Appendix C, pages 11-12]
    Thus, OSHA estimates that the average cost of compliance to
contractors associated with the requirements for communications between
host employers and contractors would be $5 to $6 per affected project
performed by a smaller establishment, and $8 to $9 per affected project
performed by a larger establishment. The corresponding cost of
compliance to utilities associated with these requirements would range
from $7 to $10 per affected project.
    Based on research conducted by CONSAD, OSHA believes that the
communications that would be required by the proposed standards already
occur for most affected projects. Employers involved in an estimated 50
percent of the affected projects performed by smaller establishments
are already in compliance with the proposed requirements. Depending on
the construction contractor involved, an estimated 75 to 90 percent of
the affected projects performed by larger contractors are also already
in compliance. For these projects, no additional costs would be
necessary to achieve compliance with the proposed standards. [2,
Appendix C, p. 11-12]
    The total estimated annual cost of compliance associated with the
proposed requirements involving communications between host employers
and contractors was thus estimated to be $7.8 million, as shown in
Table V-13. Table V-13 also shows the costs of compliance for each
affected industry.

                                  Table V-13.--Costs for Required Communications Between Host Employers and Contractors
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             Projects        Projects        Cost per       Compliance        Annual
            Industry code                        Industry name               performed     affected (%)   project  small/ rate (%)  low/    compliance
                                                                             annually       small/large        large           high            costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
NAICS 234910.........................  Water, Sewer, and Pipeline                 49,019          50/100           $5/$8           50/75         $84,325
                                        Construction.
NAICS 234920.........................  Power and Communication                 1,282,310          50/100             5/8           65/90       1,062,275
                                        Transmission Line Construction.
NAICS 234930.........................  Industrial Nonbuilding Structure           58,790          50/100             5/8           50/75         114,887
                                        Construction.
NAICS 234990.........................  All Other Heavy Construction.....         309,377          50/100             5/8           50/75         508,846
NAICS 235310.........................  Electrical Contractors...........         939,790          50/100             6/9           50/75       1,629,823
NAICS 235910.........................  Structural Steel Erection                  15,889          50/100             6/9           50/75          29,071
                                        Contractors.
NAICS 235950.........................  Building Equipment and Other               14,883          50/100             6/9           50/75          27,230
                                        Machine Installation Contractors.
NAICS 235990.........................  All Other Special Trade                    47,250          50/100             6/9           50/75          77,081
                                        Contractors.
NAICS 221110.........................  Electric Power Generation........       1,894,521           \1\ 0            7/10  ..............       1,021,719
NAICS 221120.........................  Electric Power Transmission,            3,147,692           \1\ 0            7/10  ..............       2,725,314
                                        Control, and Distribution.
NAICS 2211...........................  Publicly Owned Utilities.........         422,708           \1\ 0            7/10  ..............         280,791
Various..............................  Industrial Power Generators......         687,667           \1\ 0            7/10  ..............         232,289
SIC 0783.............................  Ornamental Shrub and Tree               2,251,278               0  ..............  ..............               0
                                        Services.
                                                                         -----------------
    Total............................  .................................  ..............  ..............  ..............  ..............      7,793,651
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Note: Projects performed directly by utilities are excluded; costs to utilities reflect costs of communication on projects contracted out.
Source: CONSAD [1], Table 5.3 and CONSAD [2], appendix C, pages 11-12.

Annual Costs Associated With Expanded Requirements for Job Briefings
    The proposed revisions to the OSHA standards would expand the
requirements for employers to conduct job briefings prior to beginning
work on affected electric power projects. Specifically, in addition to
existing requirements to provide a job briefing for employees, affected
employers would be required to provide the employee in charge of the
job with available information to perform the job safely.
    An estimated 11.1 million projects are performed by construction
contractors, utilities, other power generators, and line-clearance tree
trimmers annually. Of these, about 6.2 million projects are performed
by utilities and power generators, 2.7 million projects are performed
by contractors classified in the construction industry, and another 2.3
million projects are performed by establishments classified in the
Ornamental Shrub and Tree Services industry. All of these projects
would be potentially affected by the proposed new requirements [2,
Appendix C, p. 1 and p. 13-14].
    Compliance with the proposed standards would be expected to be
achieved through a small addition to routine communications that
already take place regularly between and among employers and employees
involved in the affected projects. The costs of compliance associated
with the revised job briefing provisions were estimated as involving
resources (including labor costs or other expenditures) equivalent to 5
minutes of supervisory time and 5 minutes of employee time for each
affected project [2, Appendix C, pages 11-12].
    Thus, OSHA estimates that the average cost of compliance associated
with the revised requirements for job briefings would be $5 to $6 per
affected project performed by utilities, other power generators, and
construction contractors. The estimated average cost of compliance for
projects performed by establishments in the Ornamental Shrub and Tree
Services industry would be about $3 per project.
    Based on research conducted by CONSAD, OSHA estimates that the job
briefings that would be required by the proposed standards are already
provided for most affected projects. Employers involved in an estimated
85 percent of the affected projects performed by establishments with
fewer than 20 employees are already in compliance with the proposed
requirements. Employers involved in an estimated 95 percent of the
affected projects performed by establishments with 20 or more employees
are also already in compliance with the proposed requirements. Among
utilities and other power generators, an estimated 95 percent to 98
percent of the potentially affected projects involve employers already
fully in compliance with the proposed job briefing provisions. For
these projects, no additional costs would be necessary to achieve
compliance with the proposed standards. [2, Appendix C, pages 13-14]
    The total estimated annual cost of compliance associated with the
proposed requirements regarding job briefings was thus estimated to be
$5.1 million, as shown in Table V-14. Table V-14 also shows the costs
of compliance for each affected industry.

                                       Table V-14.--Costs Associated With Expanded Requirements for Job Briefings
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             Projects                                       Compliance        Annual
            Industry code                        Industry name               performed       Projects        Cost per      rate (%) low     compliance
                                                                             annually      affected (%)       project          high            costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
NAICS 234910.........................  Water, Sewer, and Pipeline                 49,019             100               5           85/95         $37,642
                                        Construction.

NAICS 234920.........................  Power and Communication                 1,282,310             100               5           85/95         945,140
                                        Transmission Line Construction.
NAICS 234930.........................  Industrial Nonbuilding Structure           58,790             100               5           85/95          42,827
                                        Construction.
NAICS 234990.........................  All Other Heavy Construction.....         309,377             100               5           85/95         270,538
NAICS 235310.........................  Electrical Constructors..........         939,790             100               5           85/95         829,851
NAICS 235910.........................  Structural Steel Erection                  15,889             100               6           85/95          16,637
                                        Constructors.
NAICS 235950.........................  Building Equipment and Other               14,883             100               6           85/95          15,584
                                        Machine Installation
                                        Constructors.
NAICS 235990.........................  All Other Special Trade                    47,250             100               6           85/95          55,111
                                        Constructors.
NAICS 221110.........................  Electric Power Generation........       1,894,521             100               6           95/98         662,584
NAICS 221120.........................  Electric Power Transmission,            3,147,692             100               6           95/98       1,102,340
                                        Control, and Distribution.
NAICS 2211...........................  Publicly Owned Utilities.........         422,708             100               6           95/98         145,737
Various..............................  Industrial Power Generators......         687,667             100               6           98/98         235,334
SIC 0783.............................  Ornamental Shrub and Tree               2,251,278             100               3           85/95         700,013
                                        Services.
                                                                         -----------------
    Total............................  .................................  ..............  ..............  ..............  ..............      5,059,338
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: CONSAD [1], Table 5.3 and CONSAD [2], Appendix C, pages 13-14.

Annual Costs Associated With Determinations Regarding Electric Arc
Hazards and Appropriate Employee Protection
    Under OSHA's proposed revisions, employers are required to
determine whether employees may be exposed to hazards from flames or
from electric arcs. For employees exposed to hazards from electric
arcs, the employer must estimate the available heat energy to which the
employee would be exposed. Where the covered hazards exist, the
employer must determine the corresponding appropriate clothing or other
protection for employees.
    As noted in the proposal, the calculations of potential heat energy
exposures do not need to be made separately or repeated for each
individual project performed. Estimates that cover multiple system
areas can be developed initially, and then information from the
resulting system-wide analysis can be used repeatedly as needed. The
relevant information applicable for a specific project can be
identified and communicated to contractors by referring to the results
of the system-wide assessment or by providing the relevant system area
parameters (such as maximum fault current and clearing times) so that
the contractor can perform the calculations.
    An estimated 11.1 million projects are performed by construction
contractors, utilities, other power generators, and line-clearance tree
trimmers annually. Of these, about 6.2 million projects are performed
by utilities and power generators, 2.7 million projects are performed
by contractors classified in the construction industry, and another 2.3
million projects are performed by establishments classified in the
Ornamental Shrub and Tree Services industry. [2, Appendix C, p. 1].
    The requirements involving determinations associated with electric
arc hazards do not apply to projects performed by establishments
classified in the Ornamental Shrub and Tree Services industry. In
addition, the requirements do not apply to projects involving only
deenergized lines and equipment, even if these could involve potential
electric arc hazards.
    An estimated 50 percent of the projects involving electric power
transmission and distribution involve work on deenergized lines and
equipment; all projects involving electric power generation were
assumed to involve energized lines or equipment. Thus, the percent of
projects potentially affected by the requirements involving
determinations associated with electric arc hazards ranges from 50
percent to 100 percent across affected industries depending on the
proportion of the work in each industry that involves energized lines
or equipment. [2, Appendix C, p. 13-14]
    Compliance with the proposed standards would be expected to be
achieved through the completion of a single system-wide assessment for
each of the affected electric power generation, transmission, or
distribution systems, in conjunction with the communication of the
relevant results of that assessment to the appropriate persons in
charge of specific projects. Contractors would use the necessary
information from the system-wide analysis relevant to each particular
project to make a determination regarding the appropriate protection to
provide employees for each project.
    The costs of compliance associated with the proposed requirements
to make determinations associated with electric arc hazards were
estimated as involving resources (including labor costs or other
expenditures) for two activities. First, costs were estimated for
conducting and updating a system-wide assessment of potential energy
for each utility and other power generator. Second, costs were
estimated for making a determination regarding appropriate employee
protection, using information from a system-wide assessment, for each
affected project.
    The cost associated with conducting a system-wide assessment would
depend on the size and complexity of the system, which tends to
correspond closely to the number of employees working for the company
that operates the system. Thus, the costs were estimated on a per-
employee basis for each affected utility. The annual cost for each
system was estimated as involving resources (including labor costs or
other expenditures) equivalent to the cost of 2 hours of an electric
power system engineer's time plus 6 minutes of clerical time, per
employee of the utility. In their report, CONSAD had estimated that on
a per-employee basis the cost of conducting a system-wide

assessment would be equivalent to the cost of 3 hours of an engineer's
time plus 9 minutes of clerical time [2, Appendix C, pages 13-14]. OSHA
revised these estimates downwards by one third to reflect subsequent
changes to the proposal that reduced the associated costs.\68\ For
example, for a utility with 1,000 employees, the estimated annual cost
would be equivalent to the cost of 2,000 hours of an engineer's time
plus 6,000 minutes of clerical time. OSHA requests comments on the use
and accuracy of this approach for purposes of estimating these costs.
In particular, the Agency requests comments on whether employers will
incur these costs on an annual basis or on a one-time basis, with
smaller periodic updates.
---------------------------------------------------------------------------

    \68\ After CONSAD completed its report, OSHA added tables to the
appendices explaining the proposed protective clothing requirements.
Employers may use the heat exposure levels in these tables rather
than perform an engineering assessment for portions of their systems
that fall within the ranges covered by the tables.
---------------------------------------------------------------------------

    Thus, the estimated average cost associated with conducting a
system-wide assessment would be about $91 per system employee. For
example, the estimated average annual cost for a utility with 100
employees would be $9,100, and the average annual cost for a utility
with 1,000 employees would be $91,000.
    The cost associated with making a determination regarding the
appropriate employee protection, using information from a system-wide
assessment, was estimated as involving resources (including labor costs
or other expenditures) equivalent to 3 minutes of supervisor time for
affected contractors and for each affected project [2, Appendix C,
pages 13-14].
    Thus, the estimated average cost associated with making a
determination regarding the appropriate employee protection, using
information from a system-wide assessment, was estimated to $2 per
project.
    Based on research conducted by CONSAD, OSHA estimates that the
determinations that would be required by the proposed standards are
already made for most affected projects. An estimated 75 percent of the
establishments of utilities and other generators with fewer than 20
employees already perform system-wide assessments regarding the
available heat energy to which employees may be exposed. An estimated
85 percent of the establishments of utilities and other generators with
20 or more employees already perform system-wide assessments regarding
the available heat energy to which employees may be exposed. For these
utilities, no additional costs would be necessary to achieve compliance
with the proposed standard's requirement for determining heat energy
estimates. [2, Appendix C, p. 13-14]
    Among construction contractors, determinations regarding
appropriate employee protection are made for an estimated 25 percent of
the projects performed by smaller establishments and for an estimated
50 percent of the projects performed by larger contractors. For these
projects, no additional costs would be necessary to achieve compliance
with the proposed standards. [2, Appendix C, p. 13-14]
    The total estimated annual cost of compliance associated with the
proposed requirements regarding the determinations associated with
electric arc hazards and the corresponding appropriate employee
protection was thus estimated to be $11.0 million, as shown in Table V-
15. Table V-15 also shows the costs of compliance for each affected
industry.

             Table V-15.--Costs Associated With Determining Maximum Potential Heat Energy and Corresponding Appropriate Employee Protection
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             Projects                                       Compliance        Annual
            Industry code                        Industry name               performed       Projects        Cost per      rate (%) low/    compliance
                                                                             annually      affected (%)       project          high            costs
--------------------------------------------------------------------------------------------------------------------------------------------------------
NAICS 234910.........................  Water, Sewer, and Pipeline                 49,019              50              $2           25/50          23,055
                                        Construction.
NAICS 234920.........................  Power and Communication                 1,282,310              50               2           25/50         581,517
                                        Transmission Line Construction.
NAICS 234930.........................  Industrial Nonbuilding Structure           58,790             100               2           25/50          47,048
                                        Construction.
NAICS 234990.........................  All Other Heavy Construction.....         309,377              75               2           25/50         228,773
NAICS 235310.........................  Electrical Contractors...........         939,790              60               2           25/50         611,134
NAICS 235910.........................  Structural Steel Erection                  15,889             100               2           25/50          16,448
                                        Contractors.
NAICS 235950.........................  Building Equipment and Other               14,883             100               2           25/50          15,407
                                        Machine Installation Contractors.
NAICS 235990.........................  All Other Special Trade                    47,250             100               2           25/50          54,532
                                        Contractors.
NAICS 221110.........................  Electric Power Generation........       1,894,521              75           (\1\)           75/85       2,106,375
NAICS 221120.........................  Electric Power Transmission,            3,147,692              55           (\1\)           75/85       5,900,695
                                        Control, and Distribution.
NAICS 2211...........................  Publicly Owned Utilities.........         422,708              75           (\1\)           75/85         676,998
Various..............................  Industrial Power Generators......         687,667             100           (\1\)           85/85         778,076
SIC 0783.............................  Ornamental Shrub and Tree               2,251,278               0  ..............  ..............               0
                                        Services.
                                                                         -----------------
    Total............................  .................................  ..............  ..............  ..............  ..............     11,040,058
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Note: Costs for utilities include labor costs for performing system-wide assessments regarding potential arc hazards, estimated as $91 per utility
  employee annually. Costs for contractors reflect labor costs for determining appropriate clothing based on information provided by utilities.
Source: CONSAD [1], Table 5.3 and CONSAD [2], Appendix C, pages 13-14, and OSHA estimates.

Annual Costs for Providing Flame-Resistant Apparel (FRA) and Other
Protective Clothing
    The proposed revisions to the OSHA standards addressing electric
power generation, transmission, and distribution work include revisions
to the requirements addressing the extent of protective clothing that
employees must wear. Under the proposed standards, affected employers
must provide appropriate protective clothing to employees based on the
determination of the hazards that the employees may face.\69\
---------------------------------------------------------------------------

    \69\ OSHA has not proposed to require employers to purchase the
FRA needed to meet the clothing-related provisions of the proposal.
However, for costs purposes, the Agency is assuming that all costs
of purchasing FRA will be borne by employers. See the discussion of
the issue of whether employers should purchase this clothing in the
discussion of proposed Sec.  1926.960(g)(4) in Section IV, Summary
and Explanation of Proposed Rule, earlier in this preamble.
---------------------------------------------------------------------------

    The average costs associated with providing the clothing that would
be necessary to achieve full compliance with the proposed standards
were estimated as involving resources equivalent to those associated
with the following illustrative case example. An employer could
generally be expected to achieve compliance with the proposed
standard's clothing provisions by purchasing eight sets of flame-
resistant apparel per employee and one switching coat or flash jacket
for every three employees.
    A single set of flame-resistant apparel is estimated to cost about
$110, and with 8 sets provided for each employee, the useful life of
this apparel is expected to be 4 years. A switching coat or flash
jacket is estimated to cost about $200 and to have an expected life of
10 years. [2, Appendix C, p. 15-16]
    The flame-resistant apparel will generally be substituted for
clothing that the employee or the employer would already be providing.
The savings associated with no longer needing to purchase and launder
the clothing that would otherwise be worn by employees were not
included in this analysis.
    The flame-resistant apparel provided to employees is generally worn
in lieu of clothing that would otherwise be provided by and cared for
by the employees themselves, and typically does not require special
laundering. Thus, the proposed requirement to provide flame-resistant
apparel would not create additional burdens associated with laundering.
Employers would not be required under the proposal to launder clothes
for employees. To the extent that employers choose to begin laundering
clothes or providing laundering services for employees in conjunction
with providing flame-resistant apparel for them, the cost would not be
attributable to the proposed regulatory requirements, and any such
costs would be regarded as transfers from employers to employees rather
than additional costs to society.
    Based on research conducted by CONSAD, OSHA estimates that most
establishments in all affected industries already provide employees
with flame-resistant apparel and other required protective clothing
that fully complies with the requirements of the proposed standards.
[2, Appendix C, pages 15-16] For these establishments, no additional
costs would be necessary to achieve compliance.
    Rates of current compliance with the proposed requirements were
estimated for each affected industry. Within each industry, rates of
current compliance were estimated separately for establishments based
on their size. Among construction contractors, the estimated average
rate of current compliance for establishments with fewer than 20
employees was 50 percent. The average rate of current compliance among
construction contractor establishments with 20 or more employees was
estimated to be 75 percent. Among electric utilities and other electric
power generators, current compliance was estimated to be 80 percent for
establishments with fewer than 20 employees and 90 percent for
establishments with 20 or more employees. [2, Appendix C, p. 15-16]
    The total estimated annual cost of compliance for providing flame-
resistant apparel and other protective clothing was thus estimated to
be $8.4 million, as shown in Table V-16. Table V-16 also shows the
costs of compliance for each affected industry.

                                         Table V-16.--Costs Associated With Providing Flame-Resistant Apparel (FRA), Switching Coats, and Flash Jackets
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Useful life
                                                                                Sets of FRA               Useful life   Switching     Cost per        of
                                                                              Employees     provided     Cost per   of FRA with   coat/flash   switching    switching    Compliance     Annual
             Industry code                          Industry name              affected       per       set of FRA    8 sets/     jacket per   coat/flash   coat/flash    rate (%)    compliance
                                                                                (%)        employee                  employee     employee      jacket       jacket      low/high      costs
                                                                                (years)                                (years)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NAICS 234910...........................  Water, Sewer, and Pipeline                  100            8         $110            4         0.33         $200           10        50/75      $79,174
                                          Construction.
NAICS 234920...........................  Power and Communication                     100            8          110            4         0.33          200           10        50/75    2,071,169
                                          Transmission Line Construction.
NAICS 234930...........................  Industrial Nonbuilding Structure            100            8          110            4         0.33          200           10        50/75       94,957
                                          Construction.
NAICS 234990...........................  All Other Heavy Construction......          100            8          110            4         0.33          200           10        50/75      499,701
NAICS 235310...........................  Electrical Contractors............          100            8          110            4         0.33          200           10        50/75    1,517,936
NAICS 235910...........................  Structural Steel Erection                   100            8          110            4         0.33          200           10        50/75       25,664
                                          Contractors.
NAICS 235950...........................  Building Equipment and Other                100            8          110            4         0.33          200           10        50/75       24,039
                                          Machine Installation Contractors.
NAICS 235990...........................  All Other Special Trade                     100            8          110            4         0.33          200           10        50/75       76,318
                                          Contractors.
NAICS 221110...........................  Electric Power Generation.........          100            8          110            4         0.33          200           10        80/90    1,224,001
NAICS 221120...........................  Electric Power Transmission,                100            8          110            4         0.33          200           10        80/90    2,033,643
                                          Control, and Distribution.
NAICS 2211.............................  Publicly Owned Utilities..........          100            8          110            4         0.33          200           10        80/90      273,101
Various................................  Industrial Power Generators.......          100            8          110            4         0.33          200           10        90/90      444,284
SIC 0783...............................  Ornamental Shrub and Tree Services            0  ...........  ...........  ...........  ...........  ...........  ...........  ...........            0
                                                                            --------------
    Total..............................  ..................................  ...........  ...........  ...........  ...........  ...........  ...........  ...........  ...........    8,363,987
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Source: CONSAD [2], Appendix 1P. 15-16

Annual Costs for Providing Harnesses for Fall Protection in Aerial
Lifts
    The proposal includes provisions addressing the equipment that must
be used as part of fall arrest systems, fall restraint systems, and
work positioning systems. Under the proposal, employees in aerial lifts
performing work covered by 29 CFR 1910.269 would no longer be able to
use body belts as part of fall arrest systems and would be required to
use harnesses; belts would still be allowed to be used under certain
circumstances, as part of work positioning systems and fall restraint
systems.
    The average costs associated with providing harnesses in lieu of
belts were estimated to be about $100 per affected employee [2,
Appendix C, pages 17-18].
    The percentage of the work force that would potentially be affected
by the proposed regulatory changes was estimated for each industry. For
construction contractors, utilities, and other electric power
generators, an estimated 67 percent of the employees who perform
electric power generation, transmission, and distribution work are
potentially affected. Among employees in the Ornamental Shrub and Tree
Services industry who perform line-clearance tree-trimming operations,
an estimated 50 percent of the work force would be potentially
affected. [2, Appendix C, pages 17-18]
    Based on research conducted by CONSAD, OSHA estimates that many
establishments in all affectd industries already provide employees with
harnesses as required by the applicable provisions in the proposal [2,
Appendix C, pages 17-18]. For these establishments, no additional costs
would be necessary to achieve compliance with the proposal.
    Rates of current compliance with the proposed requirements were
estimated for each affected industry. Among construction contractors
and utilities, current compliance with the requirement to provide
harnesses was estimated to be 100 percent. OSHA already requires the
use of harnesses for fall arrest for construction work. The average
rate of current compliance among industrial power generators was
estimated to be 75 percent. Among employees performing line-clearance
tree-trimming operations, current compliance was estimated to be 25
percent for establishments with fewer than 20 employees and 50 percent
for establishments with 20 or more employees. [2, Appendix C, p. 17-18]
    The total estimated annual cost of compliance for providing
harnesses for fall protection in aerial lifts was thus estimated to be
$284,000, as shown in Table V-17. Table V-17 also shows the costs of
compliance for each affected industry.

                 Table V-17.--Costs for Providing Harnesses for Fall Protection in Aerial Lifts
----------------------------------------------------------------------------------------------------------------
                                                                           Incremental
                                                               Employees     cost of     Compliance     Annual
         Industry code                  Industry name           affected    harness in    rate (%)    compliance
                                                                  (%)        lieu of      low/high      costs
                                                                               belt
----------------------------------------------------------------------------------------------------------------
NAICS 234910...................  Water, Sewer, and Pipeline            67         $100      100/100           $0
                                  Construction.
NAICS 234920...................  Power and Communication               67          100      100/100            0
                                  Transmission Line
                                  Construction.
NAICS 234930...................  Industrial Nonbuilding                67          100      100/100            0
                                  Structure Construction.
NAICS 234990...................  All Other Heavy                       67          100      100/100            0
                                  Construction.
NAICS 235310...................  Electrical Contractors.....           67          100      100/100            0
NAICS 235910...................  Structural Steel Erection             67          100      100/100            0
                                  Contractors.
NAICS 235950...................  Building Equipment and                67          100      100/100            0
                                  Other Machine Installation
                                  Contractors.
NAICS 235990...................  All Other Special Trade               67          100      100/100            0
                                  Contractors.
NAICS 221110...................  Electric Power Generation..           67          100      100/100            0
NAICS 221120...................  Electric Power                        67          100      100/100            0
                                  Transmission, Control, and
                                  Distribution.
NAICS 2211.....................  Publicly Owned Utilities...           67          100      100/100            0
Various........................  Industrial Power Generators           67          100        75/75       67,422
SIC 0783.......................  Ornamental Shrub and Tree             50          100        25/50      216,578
                                  Services.
                                                             --------------
    Total......................  ...........................  ...........  ...........  ...........     284,000
----------------------------------------------------------------------------------------------------------------
\1\ Source: CONSAD [2], Appendix C, p. 17-18.

H. Economic Feasibility and Impacts

    This section of the preliminary analysis presents OSHA's analysis
of the economic impacts of the proposal, and an assessment of the
economic feasibility of compliance with the requirements imposed by the
rulemaking.
    A separate analysis of the potential economic impacts on small
entities (as defined in accordance with the criteria established by the
Small Business Administration (SBA)) and on very small establishments
(defined as those with fewer than 20 employees) is presented in the
following section as part of the Initial Regulatory Flexibility
Analysis, as required by the Regulatory Flexibility Act.
    In order to assess the nature and magnitude of the economic impacts
associated with compliance with the proposal, OSHA developed
quantitative estimates of the potential economic impact of the
requirements on entities in each of the affected industry sectors. The
estimated costs of compliance presented previously in this economic
analysis were compared with industry revenues and profits to provide an
assessment of potential economic impacts.
    Table V-18 presents data on the revenues associated with electric
power generation, transmission, and distribution work for each affected
industry sector, along with the corresponding industry profits and the
estimated costs of compliance in each sector.

                                                         Table V-18.--Potential Economic Impacts
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Costs as a         Costs as a
         Industry code                Industry name         Compliance costs      Comparable         Comparable         percent of         percent of
                                                                              industry revenues   industry profits       revenues           profits
--------------------------------------------------------------------------------------------------------------------------------------------------------
NAICS 234910..................  Water, Sewer, and                   $253,089       $157,458,000         $8,817,648               0.16               2.87
                                 Pipeline Construction.

NAICS 234920..................  Power and Communication            5,358,702      3,118,256,000        174,622,336               0.17               3.07
                                 Transmission Line
                                 Construction.
NAICS 234930..................  Industrial Nonbuilding               302,077      1,732,944,000         84,914,256               0.02               0.36
                                 Structure Construction.
NAICS 234990..................  All Other Heavy                    1,663,721      1,033,946,000         50,663,354               0.16               3.28
                                 Construction.
NAICS 235310..................  Electrical Contractors...          4,975,533      2,055,435,000        123,326,100               0.24               4.03
NAICS 235910..................  Structural Steel Erection             91,676        119,735,000          6,226,000               0.08               1.47
                                 Contractors.
NAICS 235950..................  Building Equipment and                87,741        113,999,000          3,647,968               0.08               2.41
                                 Other Machine
                                 Installation Contractors.
NAICS 235990..................  All Other Special Trade              279,136        160,909,000          7,401,814               0.17               3.77
                                 Contractors.
NAICS 221110..................  Electric Power Generation          5,026,324     69,385,043,000      6,730,349,171               0.01               0.07
NAICS 221120..................  Electric Power                    11,787,197    176,509,052,000     17,121,378,044               0.01               0.07
                                 Transmission, Control,
                                 and Distribution.
NAICS 2211....................  Publicly Owned Utilities.          1,380,186     25,075,725,000  .................               0.01  .................
Various.......................  Industrial Power                   1,761,391      2,630,428,000  .................               0.07  .................
                                 Generators.
SIC 0783......................  Ornamental Shrub and Tree            976,559      2,100,129,000        149,109,159               0.05               0.65
                                 Services.
                                                          --------------------
    Total.....................  .........................         33,943,333    284,193,059,000     24,460,456,070               0.01              0.14
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: CONSAD [2], Table 6.3 and Appendix C, adjusted for revised cost estimates.

    As evident from the data presented in Table V-18, the costs of
compliance with the proposed rulemaking are not large in relation to
the corresponding annual financial flows associated with the regulated
activities. The estimated costs of compliance represent about 0.01
percent of revenues and 0.14 percent of profits on average across all
entities; compliance costs do not represent more than 0.24 percent of
revenues or more than 4.03 percent of profits in any affected industry.
    The economic impact of the proposal is most likely to consist of a
small increase in prices for electricity, of about 0.01 percent on
average. It is unlikely that a price increase on the magnitude of 0.01
percent will significantly alter the services demanded by the public or
any other affected customers or intermediaries. If the compliance costs
of the proposal can be substantially recouped with such a minimal
increase in prices, there may be little effect on profits.
    In general, for most establishments, it would be very unlikely that
none of the compliance costs could be passed along in the form of
increased prices. In the event that unusual circumstances may inhibit
even a price increase of 0.01 percent to be realized, profits in any of
the affected industries would be reduced by a maximum of about 4
percent.
    In profit-earning entities, compliance costs can generally be
expected to be absorbed through a combination of increases in prices or
reduction in profits. The extent to which the impacts of cost increases
affect prices or profits depends on the price elasticity of demand for
the products or services produced and sold by the entity.
    Price elasticity of demand refers to the relationship between
changes in the price charged for a product and the resulting changes in
the demand for that product. A greater degree of elasticity of demand
implies that an entity or industry is less able to pass increases in
costs through to its customers in the form of a price increase and must
absorb more of the cost increase through a reduction in profits.
    In the case of cost increases that may be incurred due to the
requirements of the proposal, all businesses within each of the covered
industry sectors would be subject to the same requirements. Thus, to
the extent potential price increases correspond to costs associated
with achieving compliance with the standards, the elasticity of demand
for each entity will approach that faced by the industry as a whole.
    Given the small incremental increases in prices potentially
resulting from compliance with the proposed standards and the lack of
readily available substitutes for the products and services provided by
the covered industry sectors, demand is expected to be sufficiently
inelastic in each affected industry to enable entities to substantially
offset compliance costs through minor price increases without
experiencing any significant reduction in total revenues or in net
profits.
    For the economy as a whole, OSHA expects the economic impact of the
proposed rulemaking to be both an increase in the efficiency of
production of goods and services and an improvement in the welfare of
society.
    First, as demonstrated by the analysis of costs and benefits
associated with compliance with the requirements of the rule, OSHA
expects that societal welfare will increase as a result of these
standards, as the benefits achieved clearly and strongly justify the
relatively small costs necessary. The impacts of the proposal involve
net benefits of over $100 million that are achieved in a relatively
cost-effective manner.
    Second, many of the costs associated with the injuries and
fatalities resulting from the risks addressed by the proposal have
until now been externalized. That is, the costs incurred by society to
supply certain products and services associated with electric power
generation, transmission, and distribution work have not been fully
reflected in the prices of those products and services. The costs of
production have been partly borne by workers who suffer the
consequences associated with the activities causing the risks. To the
extent that fewer of these costs are externalized, the price mechanism
will enable the market to result in a more efficient allocation of
resources. It should be noted that reductions in externalities by
themselves do not necessarily increase efficiency or social welfare
unless the costs of achieving the reductions are outweighed by the
associated benefits.
    OSHA concludes that compliance with the requirements of the
proposal is economically feasible in every affected industry sector.
This conclusion is based on the criteria established by the OSH Act, as
interpreted in relevant case law.
    In general, the courts have held that a standard is economically
feasible if there is a reasonable likelihood that the estimated costs
of compliance ``will not

threaten the existence or competitive structure of an industry, even if
it does portend disaster for some marginal firms'' [United Steelworkers
of America v. Marshall, 647 F.2d 1189, 1272 (D.C. Cir. 1980)]. As
demonstrated by this preliminary regulatory impact analysis and the
supporting evidence, the potential impacts associated with achieving
compliance with the proposal fall far within the bounds of economic
feasibility in each industry sector. OSHA does not expect compliance
with the requirements of the proposal to threaten the viability of
entities or the existence or competitive structure of any of the
affected industry sectors.
    In addition, based on an analysis of the costs and economic impacts
associated with this rulemaking, OSHA preliminarily concludes that the
effects of the proposal on international trade, employment, wages, and
economic growth for the United States would be negligible.
Statement of Energy Effects
    As required by Executive Order 13211, and in accordance with the
guidance for implementing Executive Order 13211 and with the
definitions provided therein as prescribed by the Office of Management
and Budget, OSHA has analyzed the proposed standard with regard to its
potential to have a significant adverse effect on the supply,
distribution, or use of energy.
    As a result of this analysis, OSHA has determined that this action
is not a significant energy action as defined by the relevant OMB
guidance.

I. Initial Regulatory Flexibility Analysis

    The Regulatory Flexibility Act, as amended in 1996, requires the
preparation of an Initial Regulatory Flexibility Analysis (IRFA) for
certain proposed rules (5 U.S.C. 601-612). Under the provisions of the
law, each such analysis shall contain:
    1. A description of the impact of the proposed rule on small
entities;
    2. A description of the reasons why action by the agency is being
considered;
    3. A succinct statement of the objectives of, and legal basis for,
the proposed rule;
    4. A description of and, where feasible, an estimate of the number
of small entities to which the proposed rule will apply;
    5. A description of the projected reporting, recordkeeping and
other compliance requirements of the proposed rule, including an
estimate of the classes of small entities which will be subject to the
requirements and the type of professional skills necessary for
preparation of the report or record;
    6. An identification, to the extent practicable, of all relevant
Federal rules which may duplicate, overlap or conflict with the
proposed rule; and
    7. A description and discussion of any significant alternatives to
the proposed rule which accomplish the stated objectives of applicable
statutes and which minimize any significant economic impact of the
proposed rule on small entities, including
    (a) The establishment of differing compliance or reporting
requirements or timetables that take into account the resources
available to small entities;
    (b) The clarification, consolidation, or simplification of
compliance and reporting requirements under the rule for such small
entities;
    (c) The use of performance rather than design standards; and
    (d) An exemption from coverage of the rule, or any part thereof,
for such small entities.
    The Regulatory Flexibility Act further states that the required
elements of the IRFA may be performed in conjunction with or as part of
any other agenda or analysis required by any other law if such other
analysis satisfies the relevant provisions.
    1. Impact of the proposed rule on small entities.
    OSHA has analyzed the potential impact of the proposed standards on
small entities, as described below.
    The total annual cost of compliance with the proposal for small
entities is estimated to be $15.2 million [2, Table 5.7]. These costs
were calculated by provision, by industry, and by size of
establishment, as described in the cost of compliance section of this
economic analysis.
    To assess the potential economic impact of the proposal on small
entities, OSHA calculated the ratios of compliance costs to profits and
to revenues. These ratios are presented for each affected industry in
Table V-19. OSHA expects that among small entities potentially affected
by the proposal, the average increase in prices necessary to completely
offset the compliance costs would be less than 0.3 percent in each
affected industry.

                            Table V-19.--Potential Economic Impacts on Small Entities
----------------------------------------------------------------------------------------------------------------
                                                                                Compliance   Compliance
                                                                            Compliance   costs as a   costs as a
             Industry code                         Industry name            costs per    percent of   percent of
                                                                               firm        sales       profits
----------------------------------------------------------------------------------------------------------------
NAICS 234910...........................  Water, Sewer, and Pipeline               $179         0.15         4.27
                                          Construction.
NAICS 234920...........................  Power and Communication                 1,142         0.16         4.58
                                          Transmission Line Construction.
NAICS 234930...........................  Industrial Nonbuilding Structure          590         0.02         0.30
                                          Construction.
NAICS 234990...........................  All Other Heavy Construction....        1,377         0.15         2.34
NAICS 235310...........................  Electrical Contractors..........        2,085         0.24         5.31
NAICS 235910...........................  Structural Steel Erection                  89         0.07         1.45
                                          Contractors.
NAICS 235950...........................  Building Equipment and Other               51         0.08  ...........
                                          Machine Installation
                                          Contractors.
NAICS 235990...........................  All Other Special Trade                    79         0.16         3.35
                                          Contractors.
NAICS 221110...........................  Electric Power Generation.......        1,917         0.01         0.09
NAICS 221120...........................  Electric Power Transmission,            1,917         0.01         0.09
                                          Control, and Distribution.
NAICS 2211.............................  Publicly Owned Utilities........        2,444         0.00  ...........
Various................................  Industrial Power Generators.....        2,655         0.07  ...........
SIC 0783...............................  Ornamental Shrub and Tree                 545         0.04        0.62
                                          Services.
----------------------------------------------------------------------------------------------------------------
Source: CONSAD [2], Table 6.4, adjusted for revised cost estimates.

    Only to the extent that such price increases are not possible would
there be any effect on the average profits of small entities. Even in
the unlikely event that no costs could be passed through, the
compliance costs could be completely absorbed through an average
reduction in profits of less than 3 percent in most affected
industries, and through an average reduction in profits of less than 6
percent in all affected industries.

    In order to further ensure that potential impacts on small entities
were fully analyzed and considered, OSHA also separately examined the
potential impacts of the proposed standards on very small entities,
defined as those with fewer than 20 employees.
    To assess the potential economic impact of the proposed standards
on very small entities, OSHA calculated the ratios of compliance costs
to profits and to revenues. These ratios are presented for each
affected industry in Table V-20. OSHA expects that among very small
entities potentially affected by the proposed standards, the average
increase in prices necessary to completely offset the compliance costs
would be 0.4 percent or less in each affected industry.

                         Table V-20.--Potential Economic Impacts on Very Small Entities
                                      [Those with fewer than 20 employees]
----------------------------------------------------------------------------------------------------------------
                                                                                Compliance   Compliance
                                                                            Compliance   costs as a   costs as a
             Industry code                         Industry name            costs per    percent of   percent of
                                                                               firm        sales       profits
----------------------------------------------------------------------------------------------------------------
NAICS 234910...........................  Water, Sewer, and Pipeline               $131         0.24         4.49
                                          Construction.
NAICS 234920...........................  Power and Communication                   679         0.28         5.63
                                          Transmission Line Construction.
NAICS 234930...........................  Industrial Nonbuilding Structure           70         0.03         3.43
                                          Construction.
NAICS 234990...........................  All Other Heavy Construction....        1,236         0.26        31.67
NAICS 235310...........................  Electrical Contractors..........        1,623         0.35         4.84
NAICS 235910...........................  Structural Steel Erection                  72         0.12        11.00
                                          Contractors.
NAICS 235950...........................  Building Equipment and Other               48         0.13         7.39
                                          Machine Installation
                                          Contractors.
NAICS 235990...........................  All Other Special Trade                    74         0.20         6.25
                                          Contractors.
NAICS 221110...........................  Electric Power Generation.......          546         0.01         0.09
NAICS 221120...........................  Electric Power Transmission,              392         0.01         0.09
                                          Control, and Distribution.
NAICS 2211.............................  Publicly Owned Utilities........          160         0.00  ...........
Various................................  Industrial Power Generators.....  ...........  ...........  ...........
SIC 0783...............................  Ornamental Shrub and Tree                 664         0.11        1.41
                                          Services.
----------------------------------------------------------------------------------------------------------------
Source: CONSAD [2], Table 6.3, adjusted for revised cost estimates.

    Only to the extent that such price increases are not possible would
there be any effect on the average profits of small entities. Even in
the unlikely event that no costs could be passed through, the
compliance costs could be completely absorbed through an average
reduction in profits of 11 percent or less in all affected industries
except NAICS 2349-90, All Other Heavy Construction.
    In the All Other Heavy Construction industry, the reported profit
rate for very small entities is extraordinarily low, which causes the
compliance costs to appear relatively large in relation to profits. The
average costs of compliance for very small entities in this industry
represent less than 0.3 percent of corresponding revenues. OSHA
anticipates that the compliance costs will be recouped through price
increases of less than 0.3 percent, leaving profits unaffected. OSHA
requests comments regarding the estimated economic impacts of the
proposed standard on this industry.
    2. A description of the reasons why action by the agency is being
considered.
    Employees performing work involving electric power generation,
transmission, and distribution are exposed to a variety of significant
hazards, such as electric shock, fall, and burn hazards, that can and
do cause serious injury and death. OSHA estimates that 444 serious
injuries and 74 fatalities occur annually among these workers.
    Although some of these incidents may have been prevented with
better compliance with existing safety standards, research and analyses
conducted by OSHA have found that many preventable injuries and
fatalities would continue to occur even if full compliance with the
existing standards were achieved. Without counting incidents that would
potentially have been prevented with compliance with existing
standards, an estimated additional 116 injuries and 19 fatalities would
be prevented annually through full compliance with the proposed
standards.
    As explained above, additional benefits associated with this
rulemaking involve providing updated, clear, and consistent safety
standards regarding electric power generation, transmission, and
distribution work to the relevant employers, employees, and interested
members of the public. The existing OSHA standards for the construction
of electric power transmission and distribution systems are over 30
years old and inconsistent with the more recently promulgated standards
addressing repair and maintenance work. OSHA believes that the proposed
updated standards are easier to understand and to apply and will
benefit employers and employees by facilitating compliance while
improving safety.
    3. Statement of the objectives of, and legal basis for, the
proposed rule.
    The primary objective of the proposed standards is to provide an
increased degree of occupational safety for employees performing
electric power generation, transmission, and distribution work. As
stated above, an estimated 116 injuries and 19 fatalities would be
prevented annually through compliance with the proposed standards in
addition to those that may be prevented through compliance with
existing standards.
    Another objective of the proposed rulemaking is to provide updated,
clear, and consistent safety standards regarding electric power
generation, transmission, and distribution work to the relevant
employers, employees, and interested members of the public. The
proposed updated standards are easier to understand and to apply, and
they will benefit employers by facilitating compliance while improving
safety.
    The legal basis for the rule is the responsibility given the
Department of Labor through the Occupational Safety and Health (OSH)
Act of 1970. The OSH Act authorizes and obligates the Secretary of
Labor to promulgate mandatory occupational safety and health standards
as necessary ``to assure so far as possible every working man and woman
in the Nation safe and healthful working conditions and to preserve our
human resources.'' 29 U.S.C. 651(b). The legal authority can also be
cited as 29 U.S.C. 655(b); 40 U.S.C. 333.

[[Continued on page 34921]]

]

[[pp. 34921-34970]] Electric Power Generation, Transmission, and Distribution;
Electrical Protective Equipment

[[Continued from page 34920]]

    4. Description of and estimate of the number of small entities to
which the proposed rule will apply.
    OSHA has completed a preliminary analysis of the impacts associated
with this proposal, including an analysis of the type and number of
small entities to which the proposed rule would apply. In order to
determine the number of small entities potentially affected by this
rulemaking, OSHA used the definitions of small entities developed by
the SBA for each industry.
    For the construction industry, SBA defines small businesses using
revenue-based criteria. Specifically, for the four heavy construction
industries (NAICS 2349-10, 2349-20, 2349-30, and 2349-90), firms with
annual revenues of less than $28.5 million are classified as small
businesses. For specialty contractors (NAICS 2353-10, 2359-10, 2359-50,
and 2359-90), firms with annual revenues of less than $12 million are
considered to be small businesses. For SIC 0783, Ornamental Shrub and
Tree Services, firms with annual revenues of less than $5 million are
considered to be small businesses. For electric utilities (NAICS 2211),
the SBA defines small businesses using power production or
transmission-based criteria. Specifically, firms that produce or
transmit less than 4 million megawatt hours annually are considered to
be small businesses.
    The proposed standards would primarily impact firms performing
construction, maintenance, and repair work on power generation,
transmission, and distribution facilities, lines, and equipment. Based
on the definitions of small entities developed by SBA for each
industry, the proposal is estimated to potentially affect a total of
12,619 small entities.
    The estimated number of potentially affected small entities in each
industry is presented in Table V-21. As shown in this table, of the
12,619 small entities potentially affected, an estimated 2,661 entities
are in the Power and Communication Transmission Line Construction
industry, an estimated 2,552 entities are in the All Other Special
Trade Contractors industry, an estimated 1,577 entities are in the
Electrical Contractors industry, and an estimated 1,336 entities are in
the Electric Power Transmission, Control, and Distribution industry.

                                               Table V-21.--Profile of Potentially Affected Small Entities
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Potentially affected
                                                                                Potentially affected   establishments with
                 Industry code                                          Industry name                          small entities (SBA      fewer than 20
                                                                                definitions)            employees
--------------------------------------------------------------------------------------------------------------------------------------------------------
NAICS 234910...................................  Water, Sewer, and Pipeline Construction....................                   797                   629
NAICS 234920...................................  Power and Communication Transmission Line Construction.....                 2,661                 2,198
NAICS 234930...................................  Industrial Nonbuilding Structure Construction..............                   253                   118
NAICS 234990...................................  All Other Heavy Construction...............................                   624                   571
NAICS 235310...................................  Electrical Contractors.....................................                 1,577                 1,435
NAICS 235910...................................  Structural Steel Erection Contractors......................                   621                   504
NAICS 235950...................................  Building Equipment and Other Machine Installation                             714                   748
                                                  Contractors.
NAICS 235990...................................  All Other Special Trade Contractors........................                 2,552                 2,418
NAICS 221110...................................  Electric Power Generation..................................                   376                   902
NAICS 221120...................................  Electric Power Transmission, Control, and Distribution.....                 1,336                 3,203
NAICS 2211.....................................  Publicly Owned Utilities...................................                   262                    33
Various........................................  Industrial Power Generators................................                   594                     0
SIC 0783.......................................  Ornamental Shrub and Tree Services.........................                   252                   100
                                                                                -----------------------
    Total......................................  ...........................................................                12,619               12,859
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: CONSAD [1]. Table 6.2 and Appendix C, pages 1-2.

    5. Description of the projected reporting, recordkeeping and other
compliance requirements of the proposed rule.
    OSHA is proposing to revise the standards addressing the work
practices to be used, and other requirements to be followed, for the
operation and maintenance of, and for construction work involving,
electric power generation, transmission, and distribution
installations. The existing rules for this type of work were issued in
1972 for construction work and in 1994 for work covered by general
industry standards. The construction standards, in particular, are out
of date and are not consistent with the more recent, corresponding
general industry rules for the operation and maintenance of electric
power generation, transmission, and distribution systems. As described
in detail earlier, this proposal will make the construction and general
industry standards for this type of work the same.
    Existing Sec.  1910.269 contains requirements for the maintenance
and operation of electric power generation, transmission, and
distribution installations. Section 29 CFR 1910.269 is primarily a
work-practices standard. Its requirements are based on recognized safe
industry practices as reflected in current national consensus standards
covering this type of work, such as the National Electrical Safety Code
(ANSI/IEEE C2). OSHA promulgated this standard in 1994.
    Section 29 CFR 1910.269 contains provisions intended to protect
employees from the most serious hazards they face in performing this
type of work, primarily, those causing falls, burns, and electric
shocks. The requirements in this standard cover training and job
briefings, working near energized parts, deenergizing lines and
equipment and grounding them for employee protection, work on
underground and overhead installations, work in power generating
stations and substations, work in enclosed spaces, and other special
conditions and equipment unique to the generation, transmission, and
distribution of electric energy.
    OSHA is also proposing to extend its general industry standard on
electrical protective equipment to the construction industry. The
current construction standards for the design of electrical protective
equipment, which apply only to electric power transmission and
distribution work, adopt several national consensus standards by
reference. The proposed new standard would replace the incorporation of
these out-of-date

consensus standards with a set of performance-oriented requirements
that are consistent with the latest revisions of these consensus
standards and with the corresponding standard for general industry.
Additionally, OSHA is proposing new requirements for the safe use and
care of electrical protective equipment to complement the equipment
design provisions. The new standard, which will apply to all
construction work, will update the existing OSHA industry-specific
standards and will prevent accidents caused by inadequate electrical
protective equipment.
    As discussed in detail earlier, this transfer to the construction
standards of the existing general industry standards (electrical
protective equipment and 29 CFR 1910.269) is not expected to impose a
significant burden on employers. Generally, many employers doing
construction work also do general industry work, and thus OSHA believes
that they would already be following the updated general industry
standards in all of their work. The proposed standards for construction
are also consistent with the latest national consensus standards.
    OSHA is also proposing miscellaneous changes to the two
corresponding general industry standards. These changes address: Class
00 rubber insulating gloves; electrical protective equipment made from
materials other than rubber; training for electric power generation,
transmission, and distribution workers; host-contractor
responsibilities; job briefings; fall protection; insulation and
working position of employees working on or near live parts; protective
clothing; minimum approach distances; deenergizing transmission and
distribution lines and equipment; protective grounding; operating
mechanical equipment near overhead power lines; and working in manholes
and vaults.
    These changes to the general industry standards, because they apply
also to construction, would ensure that employers, where appropriate,
face consistent requirements for work performed under the construction
and general industry standards and would further protect employees
performing electrical work covered under the general industry
standards. The proposal would also update references to consensus
standards in 29 CFR 1910.137 and 29 CFR 1910.269 and would add a new
appendix to help employers comply with the new clothing provisions.
    Section IV, Summary and Explanation of Proposed Rule, earlier in
this preamble, provides further detail regarding the new and revised
provisions of the proposed rulemaking in. A description of the classes
of small entities which would be subject to the new and revised
requirements, and the type of professional skills necessary for
compliance with the requirements, is presented in the preceding
sections of this economic analysis.
    6. Federal rules which may duplicate, overlap or conflict with the
proposed rule.
    OSHA has not identified any Federal rules which may duplicate,
overlap, or conflict with the proposal, and requests comments from the
public regarding this issue.
    OSHA does not believe that the proposed provisions on host-
contractor responsibilities duplicate or overlap OSHA's multi-employer
citation policy (CPL 02-00-124). Section IV, Summary and Explanation of
Proposed Rule, earlier in this preamble, provides clarification of the
intent and application of the host-contractor requirements and their
relationship to OSHA's multi-employer citation policy.
    It is not OSHA's intent that the provisions on host-contractor
responsibilities would affect in any way the employer-employee
relationship under the Fair Labor Standards Act or under the Internal
Revenue Service regulations. The OSHA requirements are not intended to
establish an employer-employee relationship with contractors or
employees of contractors, as defined by the relevant statutes and
regulations.
    7. Alternatives to the proposed rule which accomplish the stated
objectives of applicable statutes and which minimize any significant
economic impact of the proposed rule on small entities.
    OSHA evaluated many alternatives to the proposed standards to
ensure that the proposed requirements would accomplish the stated
objectives of applicable statutes and would minimize any significant
economic impact of the proposal on small entities.
    In developing the proposal, and especially in establishing
compliance or reporting requirements or timetables that affect small
entities, the resources available to small entities were taken into
account. Compliance and reporting requirements under the proposal
applicable to small entities were clarified, consolidated, and
simplified to the extent practicable. Wherever possible, OSHA has
proposed the use of performance rather than design standards. An
exemption from coverage of the rule for small entities was not
considered to be a viable option because the safety and health of the
affected employees would be unduly jeopardized.
    Many other specific alternatives to the proposed requirements were
considered. Section IV, Summary and Explanation of Proposed Rule,
earlier in this preamble, provides discussion and explanation of the
particular requirements of the proposal.
    Other regulatory alternatives considered were those raised by the
Small Business Advocacy Review Panel, which was convened for purposes
of soliciting comments on the proposal from affected small entities. A
discussion of these alternatives is provided later in this economic
analysis.
    Nonregulatory alternatives were also considered in determining the
appropriate approach to reducing occupational hazards associated with
electric power generation, transmission, and distribution work. These
alternatives were discussed in the section of this economic analysis
entitled ``Examination of Alternative Approaches,'' earlier in this
preamble.
Alternatives Considered and Changes Made in Response to Comments From
Small Entity Representatives and Recommendations From the Small
Business Advocacy Review Panel
    On May 1, 2003, OSHA convened a Small Business Advocacy Review
Panel (SBAR Panel or Panel) for this rulemaking in accordance with the
provisions of the Small Business Regulatory Enforcement Fairness Act of
1996 (Pub. L. 104-121), as codified at 5 U.S.C. 601 et seq.
    The SBAR Panel consisted of representatives of OSHA, of the Office
of Information and Regulatory Affairs (OIRA) in the Office of
Management and Budget, and of the Office of Advocacy within the U.S.
Small Business Administration. The Panel received oral and written
comments on a draft proposal and a draft economic analysis from small
entities that would potentially be affected by this rulemaking. The
Panel, in turn, prepared a written report, which was delivered to the
Assistant Secretary for Occupational Safety and Health [3]. The report
summarized the comments received from the small entities, and included
recommendations from the Panel to OSHA regarding the proposal and the
associated analysis of compliance costs.
    Table V-22 lists each of the recommendations made by the Panel and
describes the corresponding answers or changes made by OSHA in response
to the issues raised.

          Table V-22.--Panel Recommendations and OSHA Responses
------------------------------------------------------------------------
         Panel recommendations                    OSHA responses
------------------------------------------------------------------------
1. The Small Entity Representatives      OSHA revised its economic and
 (SERs) generally felt that OSHA had      regulatory flexibility
 underestimated the costs and may have    analysis as appropriate in
 overestimated the benefits in its        light of the additional
 preliminary economic analysis. The       information received from the
 Panel recommends that OSHA revise its    SERs. Many of the comments
 economic and regulatory flexibility      from the SERs asserting
 analysis as appropriate, and that OSHA   deficiencies in the estimates
 specifically discuss the alternative     of the compliance costs were
 estimates and assumptions provided by    the result of differing
 SERs and compare them to OSHA's          interpretations of what would
 revised estimates.                       have to be done in order to
                                          achieve compliance with
                                          particular requirements.
                                         Some SERs felt that OSHA had
                                          underestimated the time and
                                          resources that would be
                                          necessary to develop and
                                          maintain written records
                                          associated with requirements
                                          for making determinations
                                          regarding training and
                                          protective clothing, for
                                          documenting employee training,
                                          and for communicating with
                                          host employers or contractors
                                          about hazards and appropriate
                                          safety practices. OSHA has
                                          clarified that written records
                                          are not in fact required to
                                          achieve compliance with these
                                          provisions of the proposed
                                          standards.
                                         In some cases, the SERs also
                                          interpreted the draft
                                          requirements associated with
                                          job briefings, host/contractor
                                          responsibilities, and electric
                                          arc hazard calculations in
                                          ways that would involve higher
                                          compliance costs than those
                                          estimated by OSHA, but that
                                          were not consistent with the
                                          way in which OSHA intended for
                                          compliance to be achieved. In
                                          these cases, OSHA clarified
                                          what would be necessary to
                                          comply with the standards such
                                          that the corresponding
                                          potential cost and impact
                                          concerns raised by the SERs
                                          would be alleviated.
                                         With regard to the cost of
                                          training that would be
                                          necessary for employees who
                                          currently are not covered by
                                          the existing training
                                          requirements in 29 CFR
                                          1910.269, OSHA revised its
                                          compliance cost calculations
                                          to reflect that an additional
                                          24.75 hours of training per
                                          employee newly covered by the
                                          training currently required by
                                          29 CFR 1910.269 would be
                                          necessary to comply with the
                                          proposed standard for
                                          construction.
                                         The SERs generally indicated
                                          that the job briefing
                                          requirements of the proposed
                                          standards are generally
                                          consistent with current
                                          practices, and that 5 minutes
                                          for the additional job
                                          briefing requirements per
                                          project would be a reasonable
                                          estimate for the amount of
                                          time that would be involved.
                                          For purposes of estimating
                                          compliance costs with the
                                          proposal in this preliminary
                                          analysis, OSHA used estimates
                                          of current compliance of 85
                                          percent to 95 percent, and
                                          estimated that 5 minutes of
                                          supervisor time and 5 minutes
                                          of employee time would be
                                          involved per affected project.
                                         With regard to the cost
                                          associated with providing
                                          flame resistant apparel to
                                          employees, in general the SERs
                                          suggested that OSHA's estimate
                                          of two sets per employee per
                                          year for small establishments,
                                          and five sets per employees
                                          every five years for large
                                          establishments, was an
                                          underestimate. The SERs also
                                          gave OSHA broad estimates of
                                          FRA, ranging from $50 per
                                          shirt to $150 for switching
                                          flash jackets. Several SERs
                                          agreed that many companies
                                          contract out clothing supplies
                                          and laundering with uniform
                                          companies. In this preliminary
                                          analysis of compliance costs
                                          associated with the
                                          requirements to provide FRA,
                                          OSHA estimates that, on
                                          average, 8 sets of FRA
                                          clothing would be provided per
                                          employee, and that with 8 sets
                                          per employee the useful life
                                          of the FRA would average 4
                                          years. The cost per set of FRA
                                          was estimated to be $110.
                                          Laundering costs were excluded
                                          since the FRA is worn in lieu
                                          of street clothes, and
                                          laundering would be needed
                                          whether the clothing was FRA,
                                          street clothing, or any other
                                          type of clothing.
                                          Additionally, the proposal
                                          does not require employers to
                                          launder the FRA.
                                         For employees who are currently
                                          provided the training required
                                          by the existing 29 CFR
                                          1910.269 standard, OSHA notes
                                          and has clarified that
                                          training that was deemed
                                          sufficient for compliance with
                                          29 CFR 1910.269 will be
                                          considered sufficient for
                                          compliance with the proposal
                                          to allow employers to tailor
                                          their training to the risk
                                          faced by employees. OSHA has
                                          included, however, the cost of
                                          providing 1.5 hours of
                                          additional training per
                                          employee in the first year for
                                          current employees and 0.75
                                          hours of additional training
                                          for new employees in the
                                          estimation of the compliance
                                          costs associated with the
                                          proposed standards.

2. In its economic and RFA analyses,     OSHA has revised its economic
 OSHA assumed that all affected firms     and regulatory flexibility
 apply existing 29 CFR 1910.269 to        analyses to reflect the costs
 construction related activities, even    associated with some firms
 though not required to do so. The        coming into compliance with 29
 reason OSHA made this assumption is      CFR 1910.269.
 OSHA though that all affected firms     Specifically, OSHA estimated
 are either covered solely by 29 CFR      that these firms would incur
 1910, or engage in both 29 CFR 1910      compliance costs equivalent to
 and 29 CFR 1926 activities, and find     those incurred by firms who
 it easiest to adopt the general          were affected by the new
 industry standard for all activities.    requirements of 29 CFR
 SERs confirmed that most firms do in     1910.269 when it was
 fact follow 29 CFR 1910.269. However,    originally promulgated in
 they also pointed out that there are     1994.
 some firms that are engaged solely in   In addition, OSHA considered
 construction activities and thus may     the SER comments on training
 not be following the 29 CFR 1910         and revised its estimate of
 standards. The Panel recommends that     training costs accordingly.
 OSHA revise its economic and             OSHA added a separate training
 regulatory flexibility analyses to       cost for firms who are not
 reflect the costs associated with some   currently covered by the
 firms coming into compliance with 29     existing training requirements
 CFR 1910.269. The SERs also reported     in 29 CFR 1910.269, as
 that compliance training under 29 CFR    presented in the compliance
 1910.269 is extensive. One SER           cost chapter of this economic
 estimated that in excess of 30 hours     analysis.
 per employee is necessary in the first
 year. The Panel recommends that OSHA
 consider the SER comments on training
 and revise its estimate of training
 costs as necessary.
3. Most SERs were concerned that a       The proposal would not require
 ``performance standard'' such as this    employers to maintain records
 means that even in cases where OSHA      of training. Employees
 does not require recordkeeping, such     themselves can attest to the
 as for training, many small entities     training they have received,
 will find recordkeeping (1) useful for   and OSHA will determine
 internal purposes and (2) virtually      compliance with the training
 the only way they will be able to        requirements primarily through
 demonstrate compliance with the rule.    employee interviews.
 The Panel recommends that OSHA
 consider whether recordkeeping is
 necessary to demonstrate compliance
 with the standard, and, if not, that
 OSHA explicitly discuss ways in which
 employers can demonstrate compliance
 without using recordkeeping.
4. SERs pointed out that the             The proposal would not require
 requirements for observation and         host employers to observe
 follow-up would result in paperwork      contract employees. Rather, it
 and reporting requirements not           would require host employers
 presented in the cost analysis. The      to report to the contract
 Panel recommends that OSHA include       employer violations of the
 such costs and paperwork burdens in      standard's work practice
 its economic analysis as appropriate.    requirements by contract
                                          employees that the host
                                          employer observes in the
                                          normal course of conducting
                                          their own operations. For
                                          example, a host employer may
                                          observe contract employees
                                          during a quality control check
                                          of the contractor's work or
                                          while employees of the host
                                          employer are working on a
                                          project alongside employees of
                                          the contract employer.
                                          Consequently, OSHA has not
                                          included a cost for conducting
                                          observations.
                                         OSHA has eliminated the draft
                                          requirement for the host
                                          employer ``to note any
                                          failures of the contract
                                          employer to correct such
                                          violations, take appropriate
                                          measures to correct the
                                          violations, and consider the
                                          contract employer's failure to
                                          correct violations in
                                          evaluating the contract
                                          employer.'' The proposal would
                                          require the contract employer
                                          to report to the host
                                          contractor any measures taken
                                          to correct reported
                                          violations. Thus, OSHA has not
                                          included costs for the host
                                          employer to follow up to
                                          ensure that the contract
                                          employer has corrected any
                                          violations.
                                         OSHA has included estimates of
                                          the costs of information
                                          collection requirements and of
                                          the associated paperwork
                                          burdens in the paperwork
                                          analysis for the proposal.
5. Several SERs argued that requiring    OSHA has eliminated the draft
 consideration of safety records would    requirement for the host
 restrict the number of eligible          employer to obtain and
 contractors, resulting in both           evaluate information on
 increased costs and potential impacts    contractors' safety
 on small firms. Several SERs also were   performance and programs.
 concerned that the draft requirement     Consequently, the preliminary
 would result in the increased use of     regulatory flexibility
 methods such as pre-qualification in     analysis does not include
 the hiring of contractors or would       costs associated with this
 increase reliance on favored             draft provision. However, the
 contractors; the SERs said that both     Agency requests comments on
 of these effects could result in         the need for such a
 increased costs and restricted           requirement and on the
 business opportunities, especially for   associated costs and
 small businesses. The Panel recommends   restricted business
 that OSHA study the extent of such       opportunities, particularly
 costs and impacts and solicit comment    with respect to small
 on them.                                 businesses.
6. Several SERs questioned OSHA's        OSHA has reexamined its
 estimates of the number of sets of       assumptions and cost estimates
 flame resistant clothing an employee     with regard to the
 would need, and its assumptions and      requirements to provide flame-
 cost estimates. The panel recommends     resistant clothing. The
 that OSHA reexamine its assumptions      comments from the SERs and
 and cost estimates in light of these     OSHA's revised estimates are
 comments.                                described in response to Panel
                                          recommendation 1 above.

7. Many SERs questioned whether the new  OSHA has collected and compiled
 revisions to 29 CFR 1910.269 would in    information from a variety of
 fact save any lives or prevent any       sources to document and
 accidents. Some commented that they      support the need for the
 had never seen an accident that would    provisions of the proposed
 have been prevented by any of the new    standards. Data on the
 provisions. Some SERs suggested that     fatalities and injuries that
 OSHA's analysis might have included      have occurred among the
 fatalities in municipal facilities       affected work force over the
 that may not be covered by the           past decade has been analyzed
 standard. Others suggested OSHA should   specifically with regard to
 discuss the extent to which the          the effectiveness of both the
 existing general industry standard had   existing and proposed
 resulted in reduced fatalities and       requirements in preventing
 injuries, and how this compares with     such incidents. This
 OSHA estimates of how many fatalities    evaluation is summarized in
 and injuries would be prevented by the   the benefits chapter of this
 proposal. The Panel recommends that      preliminary analysis; a
 OSHA provide more documentation          detailed explanation of this
 regarding the sources and nature of      evaluation is provided in the
 the anticipated benefits attributed to   corresponding research report
 the draft proposal. The estimated        [1].
 benefits should also be reexamined in   In order to quantitatively
 light of the SER comments and            determine the effectiveness of
 experiences regarding the perceived      the existing and proposed
 effectiveness of the new provisions.     standards in preventing
 In particular, OSHA should focus         injuries and fatalities, a
 attention on the benefits associated     detailed review of the
 with the provisions on flame retardant   descriptions of accidents was
 apparel, training, host/contractor       performed. For each accident
 responsibilities, and fall protection.   reviewed, the detailed
                                          description of the accident,
                                          along with the citations
                                          issued, the nature of the
                                          injuries incurred, and the
                                          causes associated with the
                                          accident, were analyzed to
                                          estimate the likelihood that
                                          the accident would have been
                                          preventable under, first, the
                                          existing applicable standards,
                                          and second, under the proposed
                                          standard. Based on these
                                          analyses, CONSAD found that
                                          full compliance with the
                                          existing standards would have
                                          prevented 52.9 percent of the
                                          injuries and fatalities;
                                          compliance with the proposed
                                          standards, however, would
                                          prevent 79.0 percent of the
                                          relevant injuries and
                                          fatalities. The increase in
                                          safety that would be provided
                                          by the proposed standards is
                                          represented by the prevention
                                          of an additional 19 fatalities
                                          and 116 injuries annually.
                                         In addition, the proposed
                                          revisions improve safety by
                                          clarifying and updating the
                                          existing standards to reflect
                                          modern technologies, work
                                          practices, and terminology,
                                          and by making the standards
                                          consistent with current
                                          consensus standards and other
                                          related standards and
                                          documents. By facilitating the
                                          understanding of and
                                          compliance with these
                                          important safety standards,
                                          the proposal also achieves
                                          better protection of employee
                                          safety while reducing
                                          uncertainty, confusion, and
                                          compliance burdens on
                                          employers.
                                         Section IV, Summary and
                                          Explanation of Proposed Rule,
                                          earlier in this preamble,
                                          includes explanations of the
                                          need for, and the expected
                                          benefit associated with
                                          particular with, particular
                                          provisions of the proposed
                                          standard. In particular, see
                                          the summary and explanation of
                                          Sec.  Sec.   1926.950(c) (host-
                                          contractor responsibilities),
                                          1926.954(b) (fall protection),
                                          and 1926.960(g) (flame-
                                          resistant apparel) for a
                                          discussion of the need for and
                                          a qualitative explanation of
                                          the benefits of these
                                          provisions.
8. There were no comments from the SERs  As presented in the chapter on
 on OSHA's estimates of the number and    compliance costs in this
 type of small entities affected by the   preliminary analysis, OSHA has
 proposal. However, some SERs pointed     revised its analysis,
 out that there may be some small         including its estimates of
 entities that engage in only             baseline activities and its
 construction related activities. The     cost estimates, to reflect the
 Panel recommends that OSHA's estimates   possible existence of some
 of current baseline activities and       firms that are not currently
 OHSA's cost estimates reflect such       covered by the existing 29 CFR
 firms.                                   1910.269 and that do not
                                          comply with these provisions
                                          when performing construction
                                          work on electric power
                                          generation, transmission, or
                                          distribution installations.

9. Most SERs were uncertain about how    OSHA has added appendices
 to comply with performance oriented      containing guidelines on the
 provisions of the proposal, and          inspection of work positioning
 further, some felt that additional       equipment to assist employers
 expenses might be required to be         in complying with the
 confident that they were in compliance   requirement to conduct such
 with such provisions. The Panel          inspections proposed in 29 CFR
 recommends that OSHA study and address   1910.269(g)(2)(iii)(a) and 29
 these issues and consider the use of     CFR 1926.954(b)(3)(i). The
 guidance material (e.g. non-mandatory    proposal also includes
 appendices) to describe specific ways    appendices on clothing in 29
 of meeting the standard, which will      CFR 1910.269 and Subpart V of
 help small employers comply, without     29 CFR Part 1926. These
 making the standard more prescriptive.   appendices should help
                                          employers comply with the
                                          clothing provisions proposed
                                          in 29 CFR 1910.269(1)(11) and
                                          29 CFR 1926.960(g).
                                         The proposal also includes many
                                          references to consensus
                                          standards that contain
                                          information helping employers
                                          comply with various provisions
                                          of the proposed standards. For
                                          example, the note to proposed
                                          29 CFR 1926.957(b) directs
                                          empl9yers to the Institute of
                                          Electrical and Electronics
                                          Engineers' IEEE Guide for
                                          Maintenance Methods on
                                          Energized Power Lines, IEEE
                                          Std. 516-2003 for guidance on
                                          the examination, cleaning,
                                          repairing, and in-service
                                          testing of live-line tools to
                                          help employers comply with
                                          that provision in the OSHA
                                          standards. Lastly, Appendix E
                                          to 29 CFR 1910.269 and
                                          Appendix E to Subpart V of 29
                                          CFR Part 1926 contain lists of
                                          reference documents to which
                                          employers can turn for help in
                                          complying with OSHA's
                                          proposal.
                                         The preamble to the proposed
                                          standards and this preliminary
                                          analysis both contain
                                          additional descriptions of
                                          what would be considered
                                          necessary and sufficient for
                                          purposes of achieving
                                          compliance with the
                                          requirements of the proposed
                                          standards. OSHA requests
                                          comments regarding which
                                          provisions, if any, require
                                          further clarification on what
                                          specific measures would or
                                          would not constitute
                                          compliance with the standards.
                                         The Agency also requests
                                          comments on what additional
                                          guidance material is needed to
                                          assist employers in complying
                                          with the standards. OSHA also
                                          encourages interested parties
                                          to submit such guidance
                                          material for possible
                                          inclusion in the final rule.
10. Most SERs were highly critical of    OSHA has modified the
 the host contractor provisions and had   provisions on host-contractor
 trouble understanding what OSHA          responsibilities substantially
 required. If these provisions are to     from the draft requirements
 be retained, the Panel recommends that   reviewed by the SERs. The
 they be revised. The Panel recommends    Agency believes that the
 that OSHA clarify what constitutes       changes address the concerns
 adequate consideration of contractor     expressed by the SERs.
 safety performance, clarify what is     The summary and explanation of
 meant by ``observation,'' clarify how    proposed 29 CFR 1926.950(c),
 the multi-employer citation policy is    earlier in the preamble,
 related to the proposal, and clarify     provides clarification of the
 whether the requirement to communicate   intent and application of the