offered by the affected sector or if the products or services of the
affected sector account only for a small portion of the income of its
consumers. If the demand is perfectly elastic (i.e., the price
elasticity is infinitely large), then no increase in price is possible,
and before-tax profits would be reduced by an amount equal to the costs
of compliance (minus any savings resulting from improved worker health
and reduced insurance costs). Under this scenario, if the costs of
compliance represent a large percentage of the sector's profits, some
establishments might be forced to close. This scenario is highly
unlikely to occur, however, because it can only arise when there are
other goods and services that are, in the eye of the consumer, perfect
substitutes for the goods and services the affected establishments
produce or provide.

          Table B-13--Estimates of Economic Impacts for Affected Establishments Across Industry Sectors
----------------------------------------------------------------------------------------------------------------
                                           Affected           Avg.       Avg.
                                    ----------------------  revenues   profits              Cost as a  Cost as a
           NAIC/Industry                                      per        per      Cost per   percent    percent
                                       Firms     Estab's     estab.     estab.     estab.       of         of
                                                            (1,000)    (1,000)               revenues   profits
----------------------------------------------------------------------------------------------------------------
Crane Rental with Operators:
    238990 All Other Specialty           1,183      1,240      1,918         79      3,118       0.16       3.97
     Trade Cont....................
Crane Rental without Operators
 (Bare Rentals):
    532412 Const./Min./For. Machine      2,137      4,631      3,289        132      4,365       0.13       3.32
     & Equip.......................
Own and Rent Cranes with Operators:
    236115 New Single-Family               168        168        233         10        604       0.26       5.87
     Housing Const.................
    236118 Residential Remodelers..         21         21        528         23      1,365       0.26       5.87
    236210 Industrial Building               8         10     14,656        646     37,928       0.26       5.87
     Construction..................
    236220 Commercial and                   21         28      4,603        203     11,912       0.26       5.87
     Institutional Building........
    237110 Water and Sewer Line and         47         62      4,570        213     11,827       0.26       5.57
     Related Struct................
    237120 Oil and Gas Pipeline and         16         21      6,822        317     17,656       0.26       5.57
     Related Struct................
    237130 Power and Communication          36         36      2,720        126      7,038       0.26       5.57
     Line and Rel..................
    237310 Highway, Street, and             76        101     12,483        580     32,306       0.26       5.57
     Bridge Construction...........
    237990 Other Heavy and Civil           143        191      5,394        251     13,960       0.26       5.57
     Engineering Const.............
    238110 Poured Concrete                 263        263      2,256        105      5,837       0.26       5.57
     Foundation and Struct.........
    238120 Structural Steel and            239        319      2,868        133      7,422       0.26       5.57
     Precast Concrete..............
    238130 Framing Contractors.....         20         20        200          8        516       0.26       6.64
    238150 Glass and Glazing                41         41        631         25      1,634       0.26       6.64
     Contractors...................
    238170 Siding Contractors......          3          3        827         32      2,140       0.26       6.64
    238190 Other Foundation,                26         35      2,802        109      7,252       0.26       6.64
     Structure, and Building.......
    238210 Electrical Contractors..         12         12      1,629         63      4,215       0.26       6.64
    238220 Plumbing, Heating, and            2          3      5,835        227     15,101       0.26       6.64
     Air-Conditioning..............
    238290 Other Building Equipment        104        138      3,801        148      9,837       0.26       6.64
     Contractors...................
    238320 Painting and Wall                20         20        962         37      2,490       0.26       6.64
     Covering Contract.............
    238910 Site Preparation                311        311      2,146         84      5,553       0.26       6.64
     Contractors...................
                                    ----------------------------------------------------------------------------
        Subtotal...................      1,576      1,803
Own but Do Not Rent:
    236115 New Single family             2,915      2,915      1,057         47      1,035       0.10       2.22
     housing construction..........
    236116 New Multifamily housing         220        220      3,792        167      1,035       0.03       0.62
     construction..................
    236117 New housing operative         1,302      1,302      5,338        235      1,035       0.02       0.44
     builders......................
    236118 Residential Remodelers..        827        827        544         24      1,035       0.19       4.31
    236210 Industrial building             235        277      6,132        270      1,035       0.02       0.38
     construction..................
    236220 Commercial and                3,718      3,718      6,479        286      1,035       0.02       0.36
     Institutional Bldg. Const.....
    237110 Water and Sewer Line            922      1,230      2,630        122      1,035       0.04       0.85
     Const.........................
    237120 Oil and gas pipeline            104        138      8,167        380      1,035       0.01       0.27
     construction..................
    237130 Power and communication         225        300      5,769        268      1,035       0.02       0.39
     line const....................
    237210 Land subdivision........          0          0        289         13          0       0.00       0.00
    237310 Highway, street and              84        111      7,266        338      1,035       0.01       0.31
     bridge const..................

    237990 Other heavy and civil           516        516      2,076         97      1,035       0.05       1.07
     eng...........................
    238110 Poured Concrete                 269        269      1,252         58      1,035       0.08       1.78
     foundation and struct.........
    238120 Structural steel and            400        400      2,018         94      1,035       0.05       1.10
     precast concrete..............
    238130 Framing Contractors.....      1,083      1,083        998         39      1,035       0.10       2.66
    238140 Masonry Contractors.....        129        129        788         31      1,035       0.13       3.37
    238150 Glass & Glazing                  53         53      1,187         46      1,035       0.09       2.24
     Contractors...................
    238160 Roofing Contractors.....        232        232        991         39      1,035       0.10       2.68
    238170 Siding Contractors......         33         33        641         25      1,035       0.16       4.14
    238190 Other foundation,                14         14      1,254         49      1,035       0.08       2.12
     structure, building, ext......
    238210 Electrical Contractors..         63         63      1,312         51      1,035       0.08       2.02
    238220 Plumbing, Heating and            87         87      1,346         52      1,035       0.08       1.97
     Airconditioning Cont..........
    238290 Other building equipment         45         59      2,383         93      1,035       0.04       1.11
     cont..........................
    238310 Drywall and insulation            0          0      1,573         61          0       0.00       0.00
     contractors...................
    238320 Painting and wall                39         39        433         17      1,035       0.24       6.14
     covering contractors..........
    238330 Flooring Contractors....          0          0        760         30          0       0.00       0.00
    238340 Tile and Terrazzo                 0          0        655         26          0       0.00       0.00
     contractors...................
    238350 Finish Carpentry                  0          0        517         20          0       0.00       0.00
     contractors...................
    238390 Other building finishing          0          0      1,304         51          0       0.00       0.00
     contractors...................
    238910 Site Preparation........        302        302      1,228         48      1,035       0.08       2.16
                                    ----------------------------------------------------------------------------
        Subtotal...................     13,815     14,316
Crane Lessees in the Construction
 Industry
    236115 New Single family            29,236     29,236      2,116         93        482       0.02       0.52
     housing construction..........
    236116 New Multifamily housing       2,199      2,199      7,606        335        482       0.01       0.14
     construction..................
    236117 New housing operative        13,022     13,022     10,692        472        482       0.00       0.10
     builders......................
    236118 Residential Remodelers..      8,275      8,275      5,442        240        482       0.01       0.20
    236210 Industrial building           2,777      2,777      6,307        278        482       0.01       0.17
     construction..................
    236220 Commercial and               37,208     37,208      6,490        286        482       0.01       0.17
     Institutional Bldg.
     Construction..................
    237110 Water and Sewer Line         12,357     12,357      2,629        122        482       0.02       0.39
     Const.........................
    237120 Oil and gas pipeline          1,052      1,403      8,254        384        482       0.01       0.13
     construction..................
    237130 Power and communication       2,263      3,017     11,295        525        482       0.00       0.09
     line const....................
    237210 Land subdivision........          0          0          0          0          0       0.00       0.00
    237310 Highway, street and             843      1,124     72,437      3,367        482       0.00       0.01
     bridge const..................
    237990 Other heavy and civil         5,251      5,251      3,950        184        482       0.01       0.26
     eng...........................
    238110 Poured Concrete               1,358      1,358     24,877      1,157        482       0.00       0.04
     foundation and struct.........
    238120 Structural steel and          4,321      4,321      2,019         94        482       0.02       0.51
     precast concrete..............
    238130 Framing Contractors.....     10,841     10,841      1,331         52        482       0.04       0.93
    238140 Masonry Contractors.....      1,286      1,286     15,762        614        482       0.00       0.08
    238150 Glass & Glazing                 529        529     12,086        471        482       0.00       0.10
     Contractors...................
    238160 Roofing Contractors.....      2,319      2,319      9,923        387        482       0.00       0.12
    238170 Siding Contractors......        332        332     12,932        504        482       0.00       0.10
    238190 Other foundation,               139        139     26,387      1,028        482       0.00       0.05
     structure, building, ext......
    238210 Electrical Contractors..        626        626    132,080      5,147        482       0.00       0.01
    238220 Plumbing, Heating and           875        875    135,367      5,275        482       0.00       0.01
     Airconditioning Cont..........
    238290 Other building equipment        457        609     23,770        926        482       0.00       0.05
     cont..........................
    238310 Drywall and insulation            0          0          0          0          0       0.00       0.00
     contractors...................
    238320 Painting and wall               389        389     43,317      1,688        482       0.00       0.03
     covering contractors..........
    238330 Flooring Contractors....          0          0          0          0          0       0.00       0.00
    238340 Tile and Terrazzo                 0          0          0          0          0       0.00       0.00
     contractors...................
    238350 Finish Carpentry                  0          0          0          0          0       0.00       0.00
     contractors...................
    238390 Other building finishing          0          0          0          0          0       0.00       0.00
     contractors...................
    238910 Site Preparation........      3,050      3,050     12,380        482        482       0.00       0.10
                                    ----------------------------------------------------------------------------
        Subtotal...................    141,004    142,542
                                    ============================================================================
            Total..................    159,715   164,532
----------------------------------------------------------------------------------------------------------------
Source: U.S. Census Bureau, Economic Census, 2002 for establishments, revenues, except Crane Rental w/o
  Operators group; Dunn and Bradstreet, Market Profiles, 2002 for data for Crane Rental w/o Operators group;
  Profit rates from Internal Revenue Service, Statistics of Income 2002 Corporation Source Book, 2002; Affected
  establish estimates from OSHA/Office of Regulatory Analysis (ORA); Cost/establishment figures from Table B-9;
  Cost as a percent of revenue = Avg. establishment cost/avg establishment revenue.

    A common intermediate case would be a price elasticity of one. In
this situation, if the costs of compliance amount to 1 percent of
revenues, then production would decline by 1 percent and prices would
rise by 1 percent. The sector would remain in business and maintain
approximately the same profit rate as before implementation of the
standard, but would produce 1 percent less of its services. Consumers
would effectively absorb the costs through a

combination of increased prices and reduced consumption; this, as the
court described in ADA v. Secretary of Labor, is the more typical case.
    Table B-13 presents estimates for the number of affected
establishments, average establishment revenues and profits, and average
establishment costs for each affected industry sector. Economic impacts
in the table (the two right-most columns) are represented by two
ratios: of average establishment costs to revenues, and of costs to
profits. In the Own and Rent Cranes with Operators sector, the impacts
for a number of sectors are identical. This effect is an artifact of
the cost model, which estimates the number of cranes, and hence costs,
based on revenues. Since profits are also derived from revenues, the
impacts parallel one another in several industry sectors.
    As is evident from the data and estimates in Table B-13, average
establishment costs of compliance for the proposal are not large in
relation to the corresponding average establishment revenues and
profits in each of the industry sectors. The estimated per
establishment cost of compliance represents at most, less than 0.26
percent (or 0.0026) of average establishment revenues. In most sectors
it is lower.
    The impact of the proposal measured by the ratio of costs to
profits varies across the affected sectors. Among the sectors in the
Crane Lessees sector, which includes about 142,500 of the 164,500
affected establishments, average employers are expected to have costs
that represent much less than 1 percent of profits. Within the sector
of employers Own but Do Not Rent, affected establishments in 11 of the
30 sectors have average costs as high as a few percent of profits (from
2 to 6 percent). This estimate of impact on costs as a percentage of
profits is low, but OSHA notes that, for a few individual industries,
the costs as a percentage of profits may be ``significant'' (over 5
percent). The Agency believes that in part the impact measure is high
because the cost of compliance is compared with average revenues and
profits for the industry as a whole. There are many very small
employers across these industries, while it is likely that only larger
employers own cranes. In that case, the average establishment's
estimated revenue and profit are lower than that of affected
establishments that own cranes, resulting in a too-high ratio (or
percentage) of costs to profits for the affected employers. The Agency
seeks comment on this.
    In the two sectors that are most intensively involved in crane use,
Crane Rental with Operators (employers primarily in the crane rental
business) and Crane Rental without Operators (bare rentals), estimated
costs are about 3 to 4 percent of profits. In the Own and Rent Cranes
with Operators sectors, costs as a percentage of profits are estimated
at 5 to 6 percent. Because these employers both own and use cranes as
well as rent them, the cost model estimates significantly higher
average establishment costs for them--even in relation to the sectors
involved primarily in crane rentals. In addition, as noted above for
the Own but Do Not Rent sector, most employers in these sectors are
quite small, with only a few employees, and a relatively small fraction
of employers in the sectors actually own cranes. Consequently, the
average establishment revenues and profits may be considerably lower
for the average establishment than for establishments that own cranes.
If so, the cost as a percentage of profits overestimates that impact
for affected establishments. The Agency seeks comment and additional
data on this issue.
    The Agency preliminarily concludes that the proposal is
economically feasible for the affected industries. As described above,
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). The
potential impacts on employer costs associated with achieving
compliance with the proposal fall well within the bounds of economic
feasibility in each industry sector. Costs of 0.25 percent of revenues
and 5 percent of profits will not threaten the existence of the
construction industry or the potential use of cranes in construction.
OSHA does not expect compliance with the requirements of the proposal
to threaten the viability of employers or the competitive structure of
any of the affected industry sectors.
    For several reasons, the Agency believes that the impact of
compliance costs will be less than estimates in Table B-13. The
economic impact of the proposal is most likely to consist of a very
small increase in prices for construction projects involving work with
cranes (0.26 percent or less, depending on the sector). Crane rental
companies, all of which must incur the costs of compliance unless they
are already in compliance, should be able to pass through costs to
lessees. The additional costs of crane safety measures are extremely
small in relation to value of construction, and there are no economic
substitutes, or alternatives, to the use of cranes in construction. It
is unlikely that a price increase of this magnitude would significantly
alter the services demanded by the public or any other affected
customers or intermediaries. If the compliance costs of the proposal
are substantially recouped with an increase in rental prices, there
would be little effect on profits.
    Given the small incremental increases in prices potentially
resulting from compliance with the proposed standard 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 revenues or profits.
8. 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 must 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 that 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 that may duplicate, overlap or conflict with the proposed
rule; and
    7. a description and discussion of any significant alternatives to
the proposed rule that accomplish the stated objectives of applicable
statutes and that 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. The total annual cost of compliance with the proposal
for small entities is estimated to be $105 million, as shown by
industry in Table B-14. The costs per establishment in the table are
identical in several sectors because the cost model assumed that, on
average, the number of cranes, operators, and crane jobs were the same
for each affected establishment. In the crane-rental sectors, the
Agency had rental income data for each sector and estimated the number
of cranes owned per establishment for each sector. Different sizes of
firms with different numbers of cranes in the rental sectors resulted
in per establishment (average) costs varying by industry NAICS
identifier.
    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 impacts are presented for each affected industry in
Table B-15. 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 0.08 percent. The average price
increase necessary to completely offset compliance costs would not
exceed 0.26 percent among small entities in any industry.
    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 1.8 percent. In most affected industries the
compliance costs, without any pass-through, could be completely
absorbed through an average reduction in profits of less than 1
percent; the reduction would be no more than 6.64 percent in any of the
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 employers 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 B-16. 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 0.11
percent (less than 1 percent).
    Only to the extent that such price increases are not possible would
there be any effect on the average profits of very 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 2.60 percent among affected very small
entities.

            Table B-14--Annualized Compliance Costs for SBA Defined Small Entities by Major Category
----------------------------------------------------------------------------------------------------------------
                                                                                Annualized
                Category/Industry                      Firms          Estabs.       compliance       Cost per
                                                                                costs          estab.
----------------------------------------------------------------------------------------------------------------
Crane Rental with Operators:
    238990 All Other Specialty Trade Cont.......          $1,171          $1,223      $3,114,525          $2,661
Crane Rental without Operators (Bare Rentals):
    532412 Const./Min./For. Machine & Equip.....           1,782           3,927       4,870,341           1,240
Own and Rent Cranes with Operators:
    236115 New Single-Family Housing Const......             168             168         101,447             604
    236118 Residential Remodelers...............              21              21          28,669           1,365
    236210 Industrial Building Construction.....               8              10         379,278          37,928
    236220 Commercial and Institutional Building              21              28         333,534          11,912
    237110 Water and Sewer Line and Related                   47              62         733,293          11,827
     Struct.....................................
    237120 Oil and Gas Pipeline and Related                   16              21         370,772          17,656
     Struct.....................................
    237130 Power and Communication Line and Rel.              36              36         253,380           7,038
    237310 Highway, Street, and Bridge                        76             101       3,262,951          32,306
     Construction...............................
    237990 Other Heavy and Civil Engineering                 143             191       2,666,449          13,960
     Const......................................
    238110 Poured Concrete Foundation and Struct             263             263       1,535,239           5,837
    238120 Structural Steel and Precast Concrete             239             319       2,367,593           7,422
    238130 Framing Contractors..................              20              20          10,326             516
    238150 Glass and Glazing Contractors........              41              41          66,984           1,634
    238170 Siding Contractors...................               3               3           6,421           2,140
    238190 Other Foundation, Structure, and                   26              35         253,836           7,252
     Building...................................
    238210 Electrical Contractors...............              12              12          50,579           4,215
    238220 Plumbing, Heating, and Air-                         2               3          45,304          15,101
     Conditioning...............................
    238290 Other Building Equipment Contractors.             104             138       1,357,502           9,837
    238320 Painting and Wall Covering Contract..              20              20          49,800           2,490
    238910 Site Preparation Contractors.........             311             311       1,727,104           5,553
                                                 ---------------------------------------------------------------
        Subtotal................................           1,576           1,803      15,600,459
Own but Do Not Rent:
    236115 New Single family housing                       2,906           2,906       3,008,274           1,035
     construction...............................
    236116 New Multifamily housing construction.             213             213         220,441           1,035
    236117 New housing operative builders.......           1,263           1,263       1,307,790           1,035

    236118 Residential Remodelers...............             825             825         854,352           1,035
    236210 Industrial building construction.....             223             262         271,527           1,035
    236220 Commercial and Institutional Bldg.              3,615           3,615       3,741,748           1,035
     Const......................................
    237110 Water and Sewer Line Const...........             918           1,223       1,266,435           1,035
    237120 Oil and gas pipeline construction....              98             131         135,815           1,035
    237130 Power and communication line const...             218             291         301,443           1,035
    237210 Land subdivision.....................               0               0               0               0
    237310 Highway, street and bridge const.....              70              93          96,478           1,035
    237990 Other heavy and civil eng............             502             502         519,969           1,035
    238110 Poured Concrete foundation and struct             108             108         111,349           1,035
    238120 Structural steel and precast concrete             388             388         402,062           1,035
    238130 Framing Contractors..................           1,061           1,061       1,098,374           1,035
    238140 Masonry Contractors..................             128             128         132,658           1,035
    238150 Glass & Glazing Contractors..........              49              49          50,247           1,035
    238160 Roofing Contractors..................             230             230         237,708           1,035
    238170 Siding Contractors...................              33              33          33,902           1,035
    238190 Other foundation, structure,                       10              10          10,476           1,035
     building, ext..............................
    238210 Electrical Contractors...............              60              60          62,427           1,035
    238220 Plumbing, Heating and Airconditioning              86              86          89,073           1,035
     Cont.......................................
    238290 Other building equipment cont........              34              45          46,573           1,035
    238310 Drywall and insulation contractors...               0               0               0               0
    238320 Painting and wall covering                         37              37          38,219           1,035
     contractors................................
    238330 Flooring Contractors.................               0               0               0               0
    238340 Tile and Terrazzo contractors........               0               0               0               0
    238350 Finish Carpentry contractors.........               0               0               0               0
    238390 Other building finishing contractors.               0               0               0               0
    238910 Site Preparation.....................             271             271         280,543           1,035
                                                 ---------------------------------------------------------------
        Subtotal................................          13,346          13,831      14,317,883
Crane Lessees in the Construction Industry:
    236115 New Single family housing                      29,229          29,229      14,094,064             482
     construction...............................
    236116 New Multifamily housing construction.           2,130           2,130       1,026,851             482
    236117 New housing operative builders.......          12,634          12,634       6,091,909             482
    236118 Residential Remodelers...............           8,274           8,274       3,989,842             482
    236210 Industrial building construction.....           2,633           2,633       1,269,640             482
    236220 Commercial and Institutional Bldg.             36,174          36,174      17,443,203             482
     Construction...............................
    237110 Water and Sewer Line Const...........          12,296          12,296       5,929,165             482
    237120 Oil and gas pipeline construction....           1,000           1,333         642,776             482
    237130 Power and communication line const...           2,211           2,948       1,421,534             482
    237210 Land subdivision.....................               0               0               0               0
    237310 Highway, street and bridge const.....             775           1,033         498,115             482
    237990 Other heavy and civil eng............           5,214           5,214       2,514,205             482
    238110 Poured Concrete foundation and struct           1,339           1,339         645,501             482
    238120 Structural steel and precast concrete           4,203           4,203       2,026,698             482
    238130 Framing Contractors..................          10,631          10,631       5,126,057             482
    238140 Masonry Contractors..................           1,283           1,283         618,425             482
    238150 Glass & Glazing Contractors..........             526             526         253,832             482
    238160 Roofing Contractors..................           2,299           2,299       1,108,729             482
    238170 Siding Contractors...................             331             331         159,368             482
    238190 Other foundation, structure,                      136             136          65,676             482
     building, ext..............................
    238210 Electrical Contractors...............             615             615         296,584             482
    238220 Plumbing, Heating and Airconditioning             863             863         416,363             482
     Cont.......................................
    238290 Other building equipment cont........             441             588         283,487             482
    238310 Drywall and insulation contractors...               0               0               0               0
    238320 Painting and wall covering                        389             389         187,673             482
     contractors................................
    238330 Flooring Contractors.................               0               0               0               0
    238340 Tile and Terrazzo contractors........               0               0               0               0
    238350 Finish Carpentry contractors.........               0               0               0               0
    238390 Other building finishing contractors.               0               0               0               0
    238910 Site Preparation.....................           3,021           3,021       1,456,783             482
                                                 ---------------------------------------------------------------
        Subtotal................................         138,645         140,120      67,566,479
                                                 ===============================================================
            Total...............................         156,520         160,905     105,469,687
----------------------------------------------------------------------------------------------------------------
Source: U.S. Census Bureau, Economic Census, 2002; Dunn and Bradstreet, Market Profiles, 2002; Data from Table 2
  for number of affected establishments; Cost estimates from OSHA cost model, ORA.

                 Table B-15--Economic Impacts for SBA Defined Small Entities by Major Categories
----------------------------------------------------------------------------------------------------------------
                                                              Avg.       Avg.
                                                            revenues   profits              Cost as a  Cost as a
         Category/Industry             Firms     Estabs.      per        per      Cost per   percent    percent
                                                             estab.     estab.     estab.       of         of
                                                            ($1,000)   ($1,000)              revenues   profits
----------------------------------------------------------------------------------------------------------------
Crane Rental with Operators:
    238990 All Other Specialty           1,171      1,223      1,551        $64     $2,661       0.17       4.18
     Trade Cont....................
Crane Rental without Operators
 (Bare Rentals):
    532412 Const./Min./For. Machine      1,782      3,927        935         37      1,240       0.13       3.32
     & Equip.......................
Own and Rent Cranes with Operators:
    236115 New Single-Family               168        168        233         10        604       0.26       5.87
     Housing Const.................
    236118 Residential Remodelers..         21         21        528         23      1,365       0.26       5.87
    236210 Industrial Building               8         10     14,656        646     37,928       0.26       5.87
     Construction..................
    236220 Commercial and                   21         28      4,603        203     11,912       0.26       5.87
     Institutional Building........
    237110 Water and Sewer Line and         47         62      4,570        213     11,827       0.26       5.57
     Related Struct................
    237120 Oil and Gas Pipeline and         16         21      6,822        317     17,656       0.26       5.57
     Related Struct................
    237130 Power and Communication          36         36      2,720        126      7,038       0.26       5.57
     Line and Rel..................
    237310 Highway, Street, and             76        101     12,483        580     32,306       0.26       5.57
     Bridge Construction...........
    237990 Other Heavy and Civil           143        191      5,394        251     13,960       0.26       5.57
     Engineering Const.............
    238110 Poured Concrete                 263        263      2,256        105      5,837       0.26       5.57
     Foundation and Struct.........
    238120 Structural Steel and            239        319      2,868        133      7,422       0.26       5.57
     Precast Concrete..............
    238130 Framing Contractors.....         20         20        200          8        516       0.26       6.64
    238150 Glass and Glazing                41         41        631         25      1,634       0.26       6.64
     Contractors...................
    238170 Siding Contractors......          3          3        827         32      2,140       0.26       6.64
    238190 Other Foundation,                26         35      2,802        109      7,252       0.26       6.64
     Structure, and Building.......
    238210 Electrical Contractors..         12         12      1,629         63      4,215       0.26       6.64
    238220 Plumbing, Heating, and            2          3      5,835        227     15,101       0.26       6.64
     Air-Conditioning..............
    238290 Other Building Equipment        104        138      3,801        148      9,837       0.26       6.64
     Contractors...................
    238320 Painting and Wall                20         20        962         37      2,490       0.26       6.64
     Covering Contract.............
    238910 Site Preparation                311        311      2,146         84      5,553       0.26       6.64
     Contractors...................
                                    ----------------------------------------------------------------------------
        Subtotal...................      1,576      1,803
Own but Do Not Rent:
    236115 New Single family             2,906      2,906      1,000         44      1,035       0.10       2.35
     housing construction..........
    236116 New Multifamily housing         213        213      3,400        150      1,035       0.03       0.69
     construction..................
    236117 New housing operative         1,263      1,263      5,104        225      1,035       0.02       0.46
     builders......................
    236118 Residential Remodelers..        825        825        543         24      1,035       0.19       4.32
    236210 Industrial building             223        262      2,570        113      1,035       0.04       0.91
     construction..................
    236220 Commercial and                3,615      3,615      3,661        161      1,035       0.03       0.64
     Institutional Bldg. Const.....
    237110 Water and Sewer Line            918      1,223      2,324        108      1,035       0.04       0.96
     Const.........................
    237120 Oil and gas pipeline             98        131      3,743        174      1,035       0.03       0.59
     construction..................
    237130 Power and communication         218        291      4,656        216      1,035       0.02       0.48
     line const....................
    237210 Land subdivision........          0          0          0          0          0       0.00       0.00
    237310 Highway, street and              70         93      3,225        150      1,035       0.03       0.69
     bridge const..................
    237990 Other heavy and civil           502        502      1,500         70      1,035       0.07       1.48
     eng...........................
    238110 Poured Concrete                 108        108      1,000         47      1,035       0.10       2.23
     foundation and struct.........
    238120 Structural steel and            388        388      1,425         66      1,035       0.07       1.56
     precast concrete..............
    238130 Framing Contractors.....      1,061      1,061        798         31      1,035       0.13       3.33
    238140 Masonry Contractors.....        128        128        675         26      1,035       0.15       3.94
    238150 Glass & Glazing                  49         49        900         35      1,035       0.12       2.95
     Contractors...................
    238160 Roofing Contractors.....        230        230        801         31      1,035       0.13       3.32
    238170 Siding Contractors......         33         33        600         23      1,035       0.17       4.43
    238190 Other foundation,                10         10        900         35      1,035       0.12       2.95
     structure, building, ext......
    238210 Electrical Contractors..         60         60      1,100         43      1,035       0.09       2.42
    238220 Plumbing, Heating and            86         86      1,100         43      1,035       0.09       2.42
     Airconditioning Cont..........
    238290 Other building equipment         34         45      1,664         65      1,035       0.06       1.60
     cont..........................
    238310 Drywall and insulation            0          0          0          0          0       0.00       0.00
     contractors...................
    238320 Painting and wall                37         37        419         16      1,035       0.25       6.34
     covering contractors..........
    238330 Flooring Contractors....          0          0          0          0          0       0.00       0.00
    238340 Tile and Terrazzo                 0          0          0          0          0       0.00       0.00
     contractors...................
    238350 Finish Carpentry                  0          0          0          0          0       0.00       0.00
     contractors...................
    238390 Other building finishing          0          0          0          0          0       0.00       0.00
     contractors...................
    238910 Site Preparation........        271        271        962         37      1,035       0.11       2.76
                                    ----------------------------------------------------------------------------
        Subtotal...................     13,346     13,831
Crane Lessees in the Construction
 Industry:
    236115 New Single family            29,229     29,229      2,116         93        482       0.02       0.52
     housing construction..........
    236116 New Multifamily housing       2,130      2,130      7,606        335        482       0.01       0.14
     construction..................
    236117 New housing operative        12,634     12,634     10,692        472        482       0.00       0.10
     builders......................
    236118 Residential Remodelers..      8,274      8,274      5,442        240        482       0.01       0.20
    236210 Industrial building           2,633      2,633      6,307        278        482       0.01       0.17
     construction..................
    236220 Commercial and               36,174     36,174      6,490        286        482       0.01       0.17
     Institutional Bldg.
     Construction..................
    237110 Water and Sewer Line         12,296     12,296      2,629        122        482       0.02       0.39
     Const.........................

    237120 Oil and gas pipeline          1,000      1,333      8,254        384        482       0.01       0.13
     construction..................
    237130 Power and communication       2,211      2,948     11,295        525        482       0.00       0.09
     line const....................
    237210 Land subdivision........          0          0          0          0          0       0.00       0.00
    237310 Highway, street and             775      1,033     72,437      3,367        482       0.00       0.01
     bridge const..................
    237990 Other heavy and civil         5,214      5,214      3,950        184        482       0.01       0.26
     eng...........................
    238110 Poured Concrete               1,339      1,339     24,877      1,157        482       0.00       0.04
     foundation and struct.........
    238120 Structural steel and          4,203      4,203      2,019         94        482       0.02       0.51
     precast concrete..............
    238130 Framing Contractors.....     10,631     10,631      1,331         52        482       0.04       0.93
    238140 Masonry Contractors.....      1,283      1,283     15,762        614        482       0.00       0.08
    238150 Glass & Glazing                 526        526     12,086        471        482       0.00       0.10
     Contractors...................
    238160 Roofing Contractors.....      2,299      2,299      9,923        387        482       0.00       0.12
    238170 Siding Contractors......        331        331     12,932        504        482       0.00       0.10
    238190 Other foundation,               136        136     26,387      1,028        482       0.00       0.05
     structure, building, ext......
    238210 Electrical Contractors..        615        615    132,080      5,147        482       0.00       0.01
    238220 Plumbing, Heating and           863        863    135,367      5,275        482       0.00       0.01
     Airconditioning Cont..........
    238290 Other building equipment        441        588     23,770        926        482       0.00       0.05
     cont..........................
    238310 Drywall and insulation            0          0          0          0          0       0.00       0.00
     contractors...................
    238320 Painting and wall               389        389     43,317      1,688        482       0.00       0.03
     covering contractors..........
    238330 Flooring Contractors....          0          0          0          0          0       0.00       0.00
    238340 Tile and Terrazzo                 0          0          0          0          0       0.00       0.00
     contractors...................
    238350 Finish Carpentry                  0          0          0          0          0       0.00       0.00
     contractors...................
    238390 Other building finishing          0          0          0          0          0       0.00       0.00
     contractors...................
    238910 Site Preparation........      3,021      3,021     12,380        482        482       0.00       0.10
                                    ----------------------------------------------------------------------------
        Subtotal...................    138,645    140,120
                                    ============================================================================
            Total..................    156,520    160,905
                                    ----------------------------------------------------------------------------
                                     .........  .........     Simple Average of impacts          0.10      2.29
----------------------------------------------------------------------------------------------------------------
Source: U.S. Census Bureau, Economic Census, 2002 for establishments, revenues, except Crane Rental w/o
  Operators group; Dunn and Bradstreet, Market Profiles, 2002 for data for Crane Rental w/o Operators group;
  Profit rates from Internal Revenue Service, Statistics of Income 2002 Corporation Source Book, 2002; Affected
  establish estimates from OSHA/Office of Regulatory Analysis (ORA); Cost/establishment figures from Table B-14;
  Cost as a percent of revenue = Avg. establishment cost/avg establishment revenue.

    2. A description of the reasons why action by the agency is being
considered.
    Employees performing construction work involving cranes/derricks
are potentially exposed to a variety of significant hazards that can
and do cause serious injury and death. OSHA estimates that 263 serious
injuries and 89 fatalities occur annually among these workers.

                             Table B-16--Economic Impacts for Very Small Entities (Less Than 20 Employees) by Major Category
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Revenues   Profits              Cost as a  Cost as a
                                                                                Profit      per        per      Cost per   percent    percent
                  Category/Industry                      Firms     Estabs.   Employees     rate      estab.     estab.     estab        of         of
                                                                                (percent)   ($1,000)   ($1,000)              revenues   profits
--------------------------------------------------------------------------------------------------------------------------------------------------------
Crane Rental with Operators:
    238990 All Other Specialty Trade Cont............      1,013      1,013      4,824       4.10       $614        $25     $1,009       0.16       4.00
Crane Rental without Operators (Bare Rentals):
    5324121 Const./Min./For. Machine & Equip.........      1,782      3,927     20,459       4.00        935         37      1,240       0.13       3.32
Own and Rent Cranes with Operators:
    236115 New Single-Family Housing Const...........        168        168        261       4.41        233         10        604       0.26       5.87
    236118 Residential Remodelers....................         21         21         45       4.41        528         23      1,365       0.26       5.87
    236210 Industrial Building Construction..........          8         10      1,067       4.41     14,656        646     37,928       0.26       5.87
    236220 Commercial and Institutional Building.....         21         28        757       4.41      4,603        203     11,912       0.26       5.87
    237110 Water and Sewer Line and Related Struct...         47         62      1,432       4.65      4,570        213     11,827       0.26       5.57
    237120 Oil and Gas Pipeline and Related Struct...         16         21      1,457       4.65      6,822        317     17,656       0.26       5.57
    237130 Power and Communication Line and Rel......         36         36        666       4.65      2,720        126      7,038       0.26       5.57
    237310 Highway, Street, and Bridge Construction..         76        101      6,456       4.65     12,483        580     32,306       0.26       5.57
    237990 Other Heavy and Civil Engineering Const...        143        191      5,857       4.65      5,394        251     13,960       0.26       5.57
    238110 Poured Concrete Foundation and Struct.....        263        263      4,328       4.65      2,256        105      5,837       0.26       6.64
(All other sectors in this category have no very
 small affected firms)
                                                                        798        901     22,326
Own Cranes But Do Not Rent Them:
    236115 New Single family housing construction....      2,763      2,763     12,910       4.41        823         36      1,035       0.13       2.85

    236116 New Multifamily housing construction......        197        197      1,987       4.41      1,350         60      1,035       0.08       1.74
    236117 New housing operative builders............      1,206      1,206     11,127       4.41      1,854         82      1,035       0.06       1.27
    236118 Residential Remodelers....................        808        808      3,126       4.41        443         20      1,035       0.23       5.30
    236210 Industrial building construction                  209        209      7,076       4.41      1,247         55      1,035       0.08       1.88
     Commercial and Institutional....................
    236220 Bldg. Construction........................      2,943      2,943     56,620       4.41      1,526         67      1,035       0.07       1.54
    237110 Water and Sewer Line Const................        900        900     14,864       4.65        702         33      1,035       0.15       3.17
    237120 Oil and gas pipeline construction.........         63         63      4,224       4.65        708         33      1,035       0.15       3.14
    237130 Power and communication line const........        207        207      8,703       4.65        655         30      1,035       0.16       3.40
    237210 Land subdivision..........................          0          0          0       4.65          0          0          0       0.00       0.00
    237310 Highway, street and bridge const..........         66         66      2,558       4.65        976         45      1,035       0.11       2.28
    237990 Other heavy and civil eng.................        378        378      5,549       4.65        589         27      1,035       0.18       3.78
    238110 Poured Concrete foundation and struct.....         46         46        527       4.65        494         23      1,035       0.21       4.50
    238120 Structural steel and precast concrete.....         90         90      1,625       4.65        659         31      1,035       0.16       3.38
    238130 Framing Contractors.......................        981        981     10,728       3.90        374         15      1,035       0.28       7.10
    238140 Masonry Contractors.......................        115        115      1,165       3.90        343         13      1,035       0.30       7.75
    238150 Glass & Glazing Contractors...............         44         44        418       3.90        619         24      1,035       0.17       4.29
    238160 Roofing Contractors.......................        206        206      2,013       3.90        447         17      1,035       0.23       5.95
    238170 Siding Contractors........................         31         31        202       3.90        408         16      1,035       0.25       6.52
    238190 Other foundation, structure, building,             10         10        115       3.90        394         15      1,035       0.26       6.74
     ext.............................................
    238210 Electrical Contractors Plumbing, Heating           54         54        671       3.90        444         17      1,035       0.23       5.99
     and Airconditioning.............................
    238220 Contractors...............................         77         77        861       3.90        509         20      1,035       0.20       5.22
    238290 Other building equipment cont.............         30         30        624       3.90        714         28      1,035       0.15       3.72
    238310 Drywall and insulation contractors........          0          0          0       3.90          0          0          0       0.00       0.00
    238320 Painting and wall covering contractors....         37         37        222       3.90        265         10      1,035       0.39      10.01
    238330 Flooring Contractors......................          0          0          0       3.90          0          0          0       0.00       0.00
    238340 Tile and Terrazzo contractors.............          0          0          0       3.90          0          0          0       0.00       0.00
    238350 Finish Carpentry contractors..............          0          0          0       3.90          0          0          0       0.00       0.00
    238390 Other building finishing contractors......          0          0          0       3.90          0          0          0       0.00       0.00
    238910 Site Preparation..........................        271        271      2,536       3.90        497         19      1,035       0.21       5.34
                                                      --------------------------------------------------------------------------------------------------
        Subtotal.....................................     11,733     11,733    150,451
Crane Lessees in the Construction Industry:
    236115 New Single family housing construction....     28,449     28,449    132,922       4.41      1,645         73        482       0.03       0.66
    236116 New Multifamily housing construction......      1,968      1,968     19,865       4.41      2,700        119        482       0.02       0.40
    236117 New housing operative builders............     12,059     12,059    111,265       4.41      3,708        164        482       0.01       0.29
    236118 Residential Remodelers....................      8,099      8,099     31,341       4.41      4,431        195        482       0.01       0.25
    236210 Industrial building construction                2,170      2,170     62,390       4.41      1,247         55        482       0.04       0.88
     Commercial and Institutional....................
    236220 Bldg. Construction........................     29,651     29,651    570,496       4.41      1,526         67        482       0.03       0.72
    237110 Water and Sewer Line Const................      9,867      9,867    122,221       4.65        702         33        482       0.07       1.48
    237120 Oil and gas pipeline construction.........        740        740     37,254       4.65        708         33        482       0.07       1.46
    237130 Power and communication line const........      2,203      2,203     69,416       4.65      1,311         61        482       0.04       0.79
    237210 Land subdivision..........................          0          0          0       4.65          0          0          0       0.00       0.00
    237310 Highway, street and bridge const..........        727        727     21,081       4.65      9,762        454        482       0.00       0.11
    237990 Other heavy and civil engg................      4,624      4,624     67,830       4.65      1,177         55        482       0.04       0.88
    238110 Poured Concrete Foundation and Struct.....      1,213      1,213     13,844       4.65      9,888        460        482       0.00       0.10
    238120 Structural steel and precast concrete.....      3,428      3,428     62,091       4.65        659         31        482       0.07       1.57
    238130 Framing Contractors.......................      9,953      9,953    108,788       3.90        498         19        482       0.10       2.48
    238140 Masonry Contractors.......................      1,150      1,150     11,655       3.90      6,859        267        482       0.01       0.18
    238150 Glass & Glazing Contractors...............        472        472      4,528       3.90      6,194        241        482       0.01       0.20
    238160 Roofing Contractors.......................      2,067      2,067     20,160       3.90      4,465        174        482       0.01       0.28
    238170 Siding Contractors........................        312        312      2,027       3.90      8,155        318        482       0.01       0.15
    238190 Other foundation, structure, building,            122        122      1,404       3.90      7,885        307        482       0.01       0.16
     ext.............................................
    238210 Electrical Contractors Plumbing, Heating          545        545      6,719       3.90     44,376      1,729        482       0.00       0.03
     and Airconditioning.............................
    238220 Contractors...............................        774        774      8,614       3.90     50,865      1,982        482       0.00       0.02
    238290 Other building equipment cont.............        435        435      6,783       3.90      7,667        299        482       0.01       0.16
    238310 Drywall and insulation contractors........          0          0          0       3.90          0          0          0       0.00       0.00
    238320 Painting and wall covering contractors....        370        370      2,228       3.90     26,527      1,034        482       0.00       0.05
    238330 Flooring Contractors......................          0          0          0       3.90          0          0          0       0.00       0.00
    238340 Tile and Terrazzo contractors.............          0          0          0       3.90          0          0          0       0.00       0.00
    238350 Finish Carpentry contractors..............          0          0          0       3.90          0          0          0       0.00       0.00
    238390 Other building finishing contractors......          0          0          0       3.90          0          0          0       0.00       0.00
    238910 Site Preparation..........................      2,739      2,739     25,631       3.90      4,974        194        482       0.01       0.25
                                                      --------------------------------------------------------------------------------------------------
        Subtotal.....................................    124,135    124,135  1,520,554
                                                      ==================================================================================================
            Total....................................    139,461    141,709  1,718,614

--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: U.S. Census Bureau, Economic Census, 2002 for establishments, revenues, except Crane Rental w/o Operators group; Dunn and Bradstreet, Market
  Profiles, 2002 for data for Crane Rental w/o Operators group; Profit rates from Internal Revenue Service, Statistics of Income 2002 Corporation Source
  Book, 2002; Affected establish estimates from OSHA/Office of Regulatory Analysis (ORA); Cost/establishment figures from Table B-14; Cost as a percent
  of revenue = Avg. establishment cost/avg establishment revenue.

    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 most injuries and fatalities would be
prevented through compliance with the proposed standard. In this
regard, the existing OSHA standards for the construction industry do
not directly address all of the hazards associated with work involving
cranes/derricks in a comprehensive manner. An estimated 53 fatalities
and 155 injuries would be prevented annually through full compliance
with the proposed standard. An additional and more complete discussion
of the reasons why this standard is being proposed by the Agency is
provided above in the Summary and Explanation section of the Preamble.
    3. Statement of the objectives of, and legal basis for, the
proposed rule.
    The primary objective of the proposed standard is to provide an
increased degree of occupational safety for employees performing
construction work involving cranes/derricks. As stated above, an
estimated 155 injuries and 53 fatalities would be prevented annually
through compliance with the proposed standard. Another objective of the
proposed rulemaking is to provide employers and employees updated and
more complete safety standards for construction work involving cranes/
derricks.
    The legal basis for the rule is 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).
    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 economic impacts
associated with this proposal, including an analysis of the type and
number of small entities to which the proposed rule would apply, as
described above. In order to determine the number of small entities
potentially affected by this rulemaking, OSHA used the definitions of
small entities developed by the Small Business Administration (SBA) for
each industry.
    For the construction industry generally, SBA defines small
businesses using revenue-based criteria. For most of the affected
construction industries, including those industries that are mostly
comprised of general contractors, firms with annual revenues of less
than $31 million are classified as small businesses. For specialty
contractors, such as structural-steel erection contractors, firms with
annual revenues of less than $13 million are considered to be small
businesses. Based on the definitions of small entities developed by SBA
for each industry, the proposal is estimated to potentially affect a
total of 160,905 small entities, as shown in Tables B-14 and 15.
Included in this number are an estimated 141,709 entities with fewer
than 20 employees (Table B-16).
    5. Description of the projected reporting, recordkeeping and other
compliance requirements of the proposed rule.
    OSHA is proposing a standard which would address the work practices
to be used, and other requirements to be followed, for performing
construction work involving cranes/derricks. Employers would be
required to keep certain records associated with inspections and
operator certification/qualification as specified by the proposed
standard. Regular reporting would not be required by the proposed
standard; however, employers would be required to demonstrate
compliance with the recordkeeping requirements as part of OSHA
compliance inspections.
    Other compliance requirements of the proposed standard include, as
required, the assembly and disassembly requirements, encroachment
prevention precautions when working near power lines, and ground
condition and power line assessments.
    The preamble to the proposed standard provides a comprehensive
description of, and further detail regarding, the provisions of the
proposed rulemaking. A description of the types of business entities
which would be subject to the new and revised requirements, and the
types of professional skills necessary for compliance with the
requirements, is presented in the preceding chapters of this economic
analysis.
    6. Federal rules which may duplicate, overlap or conflict with the
proposed rule.
    OSHA recognizes that this standard may overlap with provisions in
other construction standards, such as those standards addressing
general training requirements. OSHA has clarified the relationship
between the proposed standard and other pre-existing construction
standards which may be applicable to cranes/derricks in the summary and
explanation section of this preamble. Finally, OSHA has not identified
any other Federal rules which may duplicate, overlap, or conflict with
the proposal, and requests comments from the public regarding this
determination.
    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 and C-DAC 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, OSHA took into account the resources available
to small entities. 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. Other
regulatory alternatives were recommended 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 below.
    Nonregulatory alternatives were also considered for occupational
hazards associated with construction work involving cranes/derricks.
These alternatives were discussed above in section 2 Identification of
Market Failure and Need for Regulation.
    Alternatives considered and changes made in response to comments
from small entities and recommendations from the Small Business
Advocacy Review Panel.
    On August 18, 2006, OSHA convened a Small Business Advocacy Review
Panel (the 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 Panel consisted of representatives of OSHA, the Office of
Information and Regulatory Affairs 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 (businesses)
that would potentially be affected by the rule. The Panel, in turn,
prepared a written report which was delivered to the Assistant
Secretary for Occupational Safety and Health (which can be found in the
docket for this rulemaking). 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. In response to the Panel's
recommendations, OSHA revised many of its assumptions, estimates of
unit costs, and aspects of its economic model from the PIRFA for this
PEA. These revisions are noted throughout the PEA, but principally in
the sections for the industrial profile and estimates of costs of
compliance.
    Panel Report Recommendations and Alternatives
    Small entity representatives (SERs) had an opportunity to meet with
the Panel and comment on the draft proposal, as well as submit written
comments to the Panel afterward. Some SERs who are in the business of
supplying construction materials, and who deliver those materials to
construction sites, believed that the proposed standard should not
apply to their work. While there are many circumstances in which such
businesses are not in the scope of the standard, there may be some
circumstances in which they would be within the scope of the standard.
The Panel recommended that OSHA consider excluding them from the scope
of the standard, and solicit comment on whether equipment used solely
to deliver materials to a construction site by placing/stacking the
materials on the ground should be explicitly excluded from the proposed
standard's scope. OSHA has addressed this issue in the scope section of
the preamble.
    Some SERs favored the operator certification/qualification section,
and some SERs were opposed to various aspects of it. The Panel
anticipated that there would be considerable public comment on the
proposed rule regarding this issue. The Panel recommended that OSHA
consider the information and range of opinions that were presented by
the SERs on this issue when analyzing their comments. As noted above,
the Panel recommended that OSHA include, as part of its preliminary
economic analysis, an analysis of the costs, economic impacts, and
benefits of operator certification/qualification. Also, based on the
SERs' comments, the Panel recommended that OSHA consider, and solicit
public comment on, expanding the levels of certification so as to allow
an operator to be certified on a specific brand and model of crane.
OSHA has addressed this issue in the operator qualification and
certification section of the preamble and in this PEA.
    Some SERs described crane operators whose abilities were limited to
operating particular equipment in a very limited set of circumstances.
They believed that these operators are fully capable of doing the work,
but would be unable to pass certification tests that require knowledge
and abilities beyond these limited circumstances. In response to these
comments, the Panel recommended that OSHA consider, and solicit public
comment on, expanding these provisions to allow an operator to be
certified for specific, limited circumstances. Such circumstances would
be defined by a set of parameters that, taken together, would limit an
operation to simple, low-risk operations. Also, the Panel recommended
that OSHA consider and solicit public comment on whether such
parameters could be identified in a way that would result in a clear,
easily understood provision that could be effectively enforced. OSHA
requests comment on these issue.
    A SER commented that it would be burdensome for small employers in
remote areas to send their operators long distances to have them
tested, and that it may be difficult or costly to arrange to have an
accredited testing organization come to their area to administer the
tests. The Panel recommended that OSHA consider and solicit public
comment on allowing the written and practical tests described in Option
(1) of proposed Sec.  1926.1427(b) to be administered by an accredited
educational institution. Also, this issue has been addressed in the
preamble.
    Lastly, some SERs were concerned that in order to become certified
or qualified under proposed Sec.  1926.1427, employees would have to be
proficient in English. These SERs were concerned that, as a result, the
certification/qualification requirement would be burdensome for
employers who have operators who are unable to speak in English. The
Panel noted that the C-DAC document does not state that the
certification/qualification process be administered in English. The
proposed rule also allows employees to take the written portion of the
certification/qualification test orally. In such a case, the operator
candidate (under Sec.  1926.1427(h) and (j)) would have to demonstrate
the ability to read and locate relevant information in the equipment
manual and other related materials. However, the proposed rule does not
specify that such written materials would have to be in English. The
candidate must have a level of literacy commensurate with these
materials; as long as the materials are in the candidate's language,
the terms of this provision would be met. The Panel recommended that
OSHA provide this interpretation in a Small Business Compliance Guide.
OSHA has more fully discussed this in the preamble and intends to
provide this interpretation in compliance guidance.
    Table B-17 below lists the recommendations made by the Panel and
presents the Agency's answers or responses. In the right-hand column of
the table, where ``discussion'' of an issue is referred to in the
preamble, it means in the Summary and Explanation section.

  Table B-17--Responses to SBREFA Panel Recommendations (Also Found in
                        Table 4 of the Preamble)
------------------------------------------------------------------------
      SBREFA panel recommendation                 OSHA response
------------------------------------------------------------------------
The Panel recommends that OSHA provide   OSHA has developed a full
 full documentation for how it            preliminary economic analysis
 estimated the number of affected small   (PEA) for the proposal which
 entities and all other calculations      explains all assumptions used
 and estimates provided in the PIRFA.     in estimating the costs and
                                          benefits of the proposed
                                          standard.
The Panel recommends that OSHA           OSHA has included homebuilding
 reexamine its estimate of crane use in   industries in the ``Own but Do
 home building, the coverage of crane     Not Rent'' and ``Crane
 trucks used for loading and unloading,   Lessees'' industrial profile
 and the estimates of the number of       categories.
 jobs per crane. Changes in these
 estimates should be incorporated into
 the estimates of costs and economic
 impacts.
                                         OSHA has presented a discussion
                                          in the preamble of this rule
                                          of specific equipment that
                                          meets that functional
                                          definition of a crane
                                         The estimate of crane jobs per
                                          year has increased from
                                          368,000 total annually (or 4
                                          jobs per crane on average) to
                                          860,000 (or 9 jobs per crane
                                          on average).

The Panel recommends that OSHA review    OSHA has reviewed its cost
 its estimates for the direct costs of    estimates in the PEA for
 operator certification and seek          operator certification and
 comment on these cost estimates.         seeks comment on the estimates
                                          and methodology.
The Panel recommends that OSHA           OSHA seeks public comment on
 carefully examine certain types of       all aspects (including
 impact that could result from an         economic impacts, wages,
 operator certification requirement,      number of operators, demand,
 including reports of substantial         etc.) of the operator
 increases in the wages of operators;     certification requirements,
 the possibility of increased market      specifically as it pertains to
 power for firms renting out cranes;      the State of California.
 and loss of jobs for existing
 operators due to language, literacy,
 or knowledge problems; and seek
 comment on these types of impacts. The
 Panel also recommends studying the
 impacts of the implementation of
 operator certification in CA.
                                         OSHA has included 2 hours of
                                          travel time per operator into
                                          the unit costs for operator
                                          certification.
                                         The Agency reviewed data on
                                          wage rates for operators in
                                          California immediately before
                                          and after operator
                                          certification was required
                                          (Employment Development
                                          Department, Labor Market
                                          Information Division, State of
                                          California, 2007). The data
                                          did not show much change in
                                          operators' wages. The Agency
                                          seeks further comment from the
                                          public.
The Panel recommends that OSHA           OSHA seeks comment on the
 reexamine its estimates for the amount   methodology used to calculate
 of time required to assess ground        all of the costs in the PEA,
 conditions, the number of persons        which includes the costs for
 involved in the assessment, and the      assessing ground conditions.
 amount of coordination involved;
 clarify the extent to which such
 assessments are currently being
 conducted and what OSHA estimates as
 new costs for this rule represent; and
 seek comments on OSHA's cost estimates.
                                         OSHA assumed that inspection of
                                          ground conditions is normal
                                          business practice, and that,
                                          as a result, provisions in the
                                          proposal only add minor costs
                                          to this practice. The method
                                          of estimating costs is
                                          explained in detail in section
                                          6, Costs of Compliance.
The Panel recommends that OSHA           The Agency describes the
 carefully review the documentation       documentation requirements,
 requirements of the standard,            along with cost estimates, in
 including documentation that employers   the section of this Preamble
 may consider it prudent to maintain;     entitled ``OMB Review Under
 estimate the costs of such               the Paperwork Reduction Act of
 requirements; seek ways of minimizing    1995.''
 these costs consistent with the goals
 of the OSH Act; and solicit comment on
 these costs and ways of minimizing
 these costs.
The Panel recommends that OSHA examine   As explained in the discussion
 whether the inspection requirements of   of section 1412, Inspections,
 the proposed rule require procedures     OSHA's current standard at 29
 not normally conducted currently, such   CFR 1926.550 requires
 as lowering and fully extending the      inspections each time the
 boom before the crane can be used, and   equipment is used as well as
 removing non-hinged inspection plates    thorough annual inspections.
 during the shift inspection, estimate    In addition, national
 the costs of any such requirements,      consensus standards that are
 and seek comment on these issues.        incorporated by reference
                                          include additional inspection
                                          requirements. This proposal
                                          would list the inspection
                                          requirements in one place
                                          rather than rely on
                                          incorporated consensus
                                          standards. OSHA does not
                                          believe this proposed standard
                                          imposes significant new
                                          requirements for inspections.
                                          Paragraph 1413(a) explicitly
                                          says that booming down is not
                                          required for shift (and
                                          therefore monthly)
                                          inspections.
                                         Similarly, OSHA does not
                                          believe that inspection of any
                                          of those items would require
                                          removal of non-hinged
                                          inspection plates. In the
                                          discussion of proposed Sec.
                                          1412, OSHA requests public
                                          comment on these points.
The Panel recommends that OSHA consider  Existing Subpart N, at 29 CFR
 the costs of meeting the requirements    1926.550(a)(2), requires load
 for original load charts and full        charts; this is not a new
 manuals, and solicit comments on such    cost. Subpart N does not
 costs.                                   require manuals. OSHA believes
                                          that most crane owners and
                                          operators have and maintain
                                          crane manuals, which contain
                                          the load charts and other
                                          critical technical information
                                          about crane operations and
                                          maintenance. The Agency
                                          believes that the cost of
                                          obtaining a copy of a manual
                                          should be modest and solicits
                                          comment on how many owners or
                                          operators do not have full
                                          manuals for their cranes or
                                          derricks.
The Panel recommends that OSHA provide   The Agency has already placed
 full documentation for its analysis of   additional materials into the
 the benefits the proposed rule are       rulemaking docket to aid in
 expected to produce and assure that      the reproduction of the
 the benefits analysis is reproducible    benefits analysis. The Agency
 by others.                               has also developed a full
                                          benefits analysis (section 4
                                          of this PEA) which includes
                                          the methodology and data
                                          sources for the calculations.
The Panel recommends that OSHA consider  OSHA addresses this
 and solicit public comment on whether    recommendation in the
 the scope language should be clarified   discussion of proposed
 to explicitly state whether forklifts    paragraph 1400(c)(8) and
 that are modified to perform tasks       solicits public comment on the
 similar to equipment (cranes and         issue.
 derricks) modified in that manner
 would be covered.

The Panel recommends that there be a     OSHA explains in the discussion
 full explanation in the preamble of      of proposed paragraph 1402(e)
 how responsibility for ensuring          how the various employers,
 adequate ground conditions is shared     including the controlling
 between the controlling entity, and      entity, the employer whose
 the employer of the individual           employees operate the
 supervising assembly/disassembly and/    equipment, and the employer of
 or the operator.                         the A/D supervisor share
                                          responsibility for ensuring
                                          adequate ground conditions.
The Panel recommends that OSHA restate   OSHA addresses this
 the applicable corrective action         recommendation in the
 provisions (which are set forth in the   discussion of proposed
 shift inspection) in the monthly         paragraph 1412(e) and solicits
 inspection section.                      public comment on the issue.
The Panel recommends that OSHA solicit   OSHA addresses this
 public comment on whether, and under     recommendation in the
 what circumstances, booming down         discussion of proposed
 should be specifically excluded as a     paragraph 1412(d) and solicits
 part of the shift inspection, and        public comment on the issues
 whether the removal of non-hinged        raised in the recommendation.
 inspection plates should be required
 during the shift inspection.
The Panel recommends that OSHA solicit   OSHA addresses the
 public comment on whether to include     recommendation in the
 an exception for transportation          discussion of proposed
 systems in proposed paragraph 1412(a),   paragraph 1412(a) and solicits
 which requires an inspection of          comment on the issues raised
 equipment that has had modifications     in the recommendation.
 or additions that affect its safe
 operation, and, if so, what the
 appropriate terminology for such an
 exception would be.
The Panel recommends that OSHA explain   In the explanation of paragraph
 in the preamble that the shift           1412(d)(1) of the proposed
 inspection does not need to be           rule, OSHA explains that the
 completed prior to each shift but may    shift inspection may be
 be completed during the shift.           completed during the shift.
The Panel recommends that OSHA solicit   OSHA addresses this
 public comment about whether it is       recommendation in the
 necessary to clarify the requirement     discussion of proposed
 of proposed paragraph 1412(d)(1)(xi)     paragraph 1412(d)(1)(xi) and
 that the equipment be inspected for      requests public comment on the
 ``level position.''                      issues raised in the
                                          recommendation.
The Panel recommends that OSHA solicit   There is no proposed
 comment on whether paragraph             requirement to check the
 1412(f)(2)(xii)(D) should be changed     pressure ``at each and every
 to require that pressure be inspected    line.'' The provision simply
 ``at the end of the line,'' as           states that relief valves
 distinguished from ``at each and every   should be checked for failure
 line,'' and if so, what the best         to reach correct pressure. If
 terminology would be to meet this        this can be done at one point
 purpose. (An SER indicated that          for the entire system, then
 paragraph (f)(2)(xiv)(D) of Sec.         that would satisfy the
 1412 should be modified to ``checking    requirement.
 pressure setting,'' in part to avoid
 having to check the pressure at ``each
 and every line'' as opposed to ``at
 the end of the line.'')
The Panel recommends that OSHA solicit   Proposed paragraph
 public comment on whether paragraph      1412(f)(2)(xx) does not
 (f)(2)(xx) of Sec.   1412 should be      require the corrective action
 deleted because an SER believes that     to which the SER refers. If an
 it is not always appropriate to retain   inspection under proposed
 originally-equipped steps and ladders,   paragraph 1412(f) reveals a
 such as in instances where they are      deficiency, a qualified person
 replaced with ``attaching dollies.''     must determine whether that
                                          deficiency is a safety hazard
                                          requiring immediate
                                          correction. If the inspection
                                          reveals that original
                                          equipment, such as stairs and
                                          ladders, have been replaced
                                          with something equally safe,
                                          there would be no safety
                                          hazard and no requirement for
                                          corrective action.
The Panel recommends that OSHA solicit   OSHA addresses this
 public comment on the extent of          recommendation in the
 documentation of monthly and annual/     discussion of proposed
 comprehensive inspections the rule       paragraph 1412(f) and requests
 should require.                          public comment on the issue.
The Panel recommends that OSHA solicit   OSHA addresses this
 public comment on whether the            recommendation in the
 provision for monthly inspections        discussion of proposed
 should, like the provision for annual    paragraph 1412(e) and requests
 inspections, specify who must keep the   public comment on the issue.
 documentation associated with monthly
 inspections.
The Panel recommends that OSHA consider  OSHA addresses this
 ways to account for the possibility      recommendation in the
 that there may sometimes be an           discussion of proposed
 extended delay in obtaining the part     paragraph 1416(d) and solicits
 number for an operational aid for        public comment on the issue.
 older equipment and solicit public
 comment on the extent to which this is
 a problem.
The Panel recommends that the provision  In the discussion of proposed
 on fall protection (proposed Sec.        Sec.   1423, OSHA explains the
 1423) be proposed as written and that    Committee's rationale
 OSHA explain in the preamble how and     underlying the proposed
 why the Committee arrived at this        section.
 provision.
The Panel recommends that OSHA consider  OSHA addresses these
 the potential advantages of and          recommendations in the
 solicit public comment on adding         discussion of proposed Sec.
 provisions to proposed Sec.   1427       1427 and requests public
 that would allow an operator to be       comment on the issues raised
 certified on a particular model of       by the Panel.
 crane; allow tests to be administered
 by an accredited educational
 institution; and allow employers to
 use manuals that have been re-written
 to accommodate the literacy level and
 English proficiency of operators.
The Panel recommends that OSHA clarify   The issue is discussed in the
 in the preamble how the proposed rule    explanation of the proposed
 addresses an SER's concern that his      rule for Sec.   1926.1427(h).
 crane operator would not be able to
 pass a written qualification/
 certification exam because the
 operator has difficulty in taking
 written exams.

The Panel recommends soliciting public   OSHA addresses this
 comment on whether the phrase            recommendation in the
 ``equipment capacity and type'' in       discussion of proposed
 proposed paragraph 1427(b)(1)(ii)(B)     paragraph 1427(b)(1)(ii)(B)
 needs clarification, suggestions on      and requests public comment on
 how to accomplish this, and whether      the issue.
 the categories represented in Figures
 1 through 10 contained in ANSI B30.5-
 2000) (i.e., commercial truck-mounted
 crane--telescoping boom; commercial
 truck-mounted crane--non-telescoping
 boom; crawler crane; crawler crane--
 telescoping boom; locomotive crane;
 wheel mounted crane (multiple control
 station); wheel mounted crane--
 telescoping boom (multiple control
 station); wheel mounted crane (single
 control station); wheel mounted crane--
 telescoping boom (single control
 station)) should be used.
The Panel recommends that OSHA ask for   OSHA addresses this
 public comment on whether the rule       recommendation in the
 needs to state more clearly that         discussion of proposed
 paragraph 1427(j)(1)(i) requires more    paragraph 1430(c) and requests
 limited training for operators of        public comment on the issue.
 smaller capacity equipment used in
 less complex operations as compared
 with operators of higher capacity,
 more complex equipment used in more
 complex situations.
The Panel recommends that OSHA consider  OSHA addresses this
 and ask for public comment on whether    recommendation in the
 a more limited training program would    discussion of proposed
 be appropriate for operations based on   paragraph 1430(c) and requests
 the capacity and type of equipment and   public comment on the issue.
 nature of operations.
The Panel recommends that OSHA consider  OSHA addresses this
 and ask for public comment as to         recommendation in the
 whether the supervisor responsible for   discussion of proposed
 oversight for an operator in the pre-    paragraph 1430(c) and requests
 qualification period (1427(f)) should    public comment on the issue.
 have additional training beyond that
 required in the C-DAC document at
 paragraph 1427(f)(2)(iii)(B).
The Panel recommends OSHA solicit        OSHA addresses these
 comment on whether there are qualified   recommendations in the
 persons in the field with the            discussion of proposed
 necessary expertise to assess how the    paragraph 1437(n)(2) and
 rated capacity for land cranes and       requests public comment on the
 derricks used on barges and other        issues.
 flotation devices needs to be modified
 as required by proposed paragraph
 1437(n)(2).
The Panel also recommends that OSHA      ...............................
 solicit comment on whether it is
 necessary, from a safety standpoint,
 to apply this provision to cranes used
 only for duty cycle work, and if so,
 why that is the case, and how ``duty
 cycle work'' should be defined.
The Panel recommends that OSHA consider  OSHA addresses this
 and ask for comment on whether it        recommendation in the
 would be appropriate to exempt from      discussion of proposed
 the rule small side boom cranes          paragraph 1440(a) and requests
 incapable of lifting above the height    public comment on the issue.
 of a truck bed and with a capacity of
 not more than 6,000 pounds.
The Panel recommends that OSHA solicit   The length and
 public comment on how the proposed       comprehensiveness of the
 rule could be simplified (without        standard is an issue for this
 creating ambiguities) and made easier    rulemaking. OSHA requests
 to understand. (Several SERs believed    comment on how and whether the
 that the C-DAC document was so long      proposal can be shortened or
 and complex that small businesses        simplified--made easier to
 would have difficulty understanding it   understand--and the effect of
 and complying with it.)                  that on addressing
                                          construction hazards.
The Panel recommends that OSHA consider  OSHA will consider developing
 outlining the inspection requirements    such an aid as a separate
 in spreadsheet form in an Appendix or    guidance document.
 developing some other means to help
 employers understand what inspections
 are needed and when they must be done.
The Panel recommends that OSHA consider  Some SERs requested
 whether use of the words ``determine''   clarification as to when
 and ``demonstrate'' would mandate that   documentation was required,
 the employer keep records of such        believing that the document
 determinations and if records would be   implicitly requires
 required to make such demonstrations.    documentation when it states
                                          that the employer must
                                          ``determine'' or
                                          ``demonstrate'' certain
                                          things. OSHA notes that it
                                          cannot cite an employer for
                                          failing to have documentation
                                          not explicitly called for in a
                                          standard. See also the
                                          discussion under proposed
                                          paragraph 1402(e).
The Panel recommends soliciting public   OSHA addresses this
 comment on whether the word ``days''     recommendation in the
 as used in sections 1416(d) and          discussion of proposed
 1416(e) should be clarified to mean      paragraph 1416(d) and requests
 calendar days or business days.          public comment on the issue.
The Panel recommends that OSHA           OSHA discusses in detail the
 carefully discuss what is included and   types of machinery that are
 excluded from the scope of this          included under this proposed
 standard.                                standard and those that are
                                          excluded in the explanation of
                                          Sec.   1400.
The Panel recommends that OSHA gather    OSHA has obtained and evaluated
 data and analyze the effects of          a study by the Construction
 already existing certification           Safety Association of Ontario
 requirements.                            showing that Ontario's
                                          certification requirement has
                                          led to a substantial decrease
                                          in crane-related fatalities
                                          there.
The Panel recommends that OSHA consider  OSHA addresses this
 excluding and soliciting comment on      recommendation in the
 whether equipment used solely to         discussion of proposed
 deliver materials to a construction      paragraph 1400(c) and requests
 site by placing/stacking the materials   public comment on the issue.
 on the ground should be explicitly
 excluded from the proposed standard's
 scope.

The Panel recommends that OSHA should    The information and opinions
 consider the information and range of    submitted by the SERs are part
 opinions that were presented by the      of the record for this
 SERs on the issue of operator            rulemaking, and OSHA will
 qualification/certification when         consider them along with the
 analyzing the public comments on this    other public comments on the
 issue.                                   proposed rule.
The Panel recommends that OSHA consider  OSHA addresses this
 and solicit public comment on            recommendation in the
 expanding the levels of certification    discussion of proposed
 so as to allow an operator to be         paragraph 1427(j)(1) and
 certified on a specific brand's model    requests public comment on the
 of crane.                                issue.
The Panel recommends that OSHA consider  OSHA addresses this
 and solicit public comment on            recommendation in the
 expanding the levels of operator         discussion of proposed
 qualification/certification to allow     paragraph 1427(j)(1) and
 an operator to be certified for a        requests public comment on the
 specific, limited type of                issue.
 circumstance. Such a circumstance
 would be defined by a set of
 parameters that, taken together, would
 describe an operation characterized by
 simplicity and relatively low risk.
 The Agency should consider and solicit
 comment on whether such parameters
 could be identified in a way that
 would result in a clear, easily
 understood provision that could be
 effectively enforced.
The Panel recommends that OSHA consider  OSHA addresses this
 and solicit public comment on allowing   recommendation in the
 the written and practical tests          discussion of paragraph
 described in Option (1) to be            1427(b)(3) and requests public
 administered by an accredited            comment on the issue.
 educational institution.
The Panel recommends that OSHA solicit   OSHA addresses this
 public comment on making it clear        recommendation in the
 that: (1) An employer is permitted to    discussion of proposed
 equip its cranes with manuals re-        paragraph 1427(h)(1) and
 written in a way that would allow an     requests public comment on the
 operator with a low literacy level to    issues.
 understand the material (such as
 substituting some text with pictures
 and illustrations), and (2) making it
 clear that, when the cranes are
 equipped with such re-written manuals
 and materials, the ``manuals'' and
 ``materials'' referred to in these
 literacy provisions would be the re-
 written manuals.
The Panel recommends that OSHA explain   OSHA will issue a Small
 in a Small Business Compliance Guide     Business Compliance Guide
 that the certification/qualification     after a final rule is issued
 test does not need to be administered    and will explain these points
 in English but can be administered in    in the Guide.
 a language that the candidate can
 read; and that while the employee
 would also need to have a sufficient
 level of literacy to read and
 understand the relevant information in
 the equipment manual, that requirement
 would be satisfied if the material is
 written in a language that the
 employee can read and understand.
------------------------------------------------------------------------

9. References
Beavers, J.E., Moore, R., Rinehart, R., Schriver, W.R., ``Crane
Related Fatalities in the Construction Industry'', Journal of
Construction Engineering and Management, September 2006
Bureau of Labor Statistics, ``Census of Fatal Occupational
Injuries,'' 1994-2003
Bureau of Labor Statistics, ``Survey of Occupational Injuries and
Illnesses,'' 1995-2004
Dunn and Bradstreet, ``Market Profiles,'' 2002
Environmental Protection Agency, ``The Benefits and Costs of the
Clean Air Act of 1990 to 2010,'' 1999
Environmental Protection Agency, ``Guidelines for Preparing Economic
Analyses'', 2000
Internal Revenue Service, ``Statistics of Income 2002 Corporation
Source Book,'' 2002
Occupational Safety and Health Administration, ``IMIS Fatality
Reports,'' 1995-2005
U.S. Bureau of the Census, ``Economic Census,'' 2002

C. OMB Review Under the Paperwork Reduction Act of 1995

    The proposed Cranes and Derricks in Construction Standard contains
collection-of-information (paperwork) requirements that are subject to
review by the Office of Management and Budget (``OMB'') under the
Paperwork Reduction Act of 1995 (``PRA-95''), 44 U.S.C. 3501 et seq.,
and OMB's regulations at 5 CFR part 1320. The Paperwork Reduction Act
defines ``collection of information'' as ``the obtaining, causing to be
obtained, soliciting, or requiring the disclosure to third parties or
the public of facts or opinions by or for an agency regardless of form
or format. * * * '' (44 U.S.C. 3502(3)(A).) OSHA submitted the
collection-of-information requirements identified in this NPRM to OMB
for review (44 U.S.C. 3507(d)). OSHA solicits comments on the
collection-of-information requirements and the estimated burden hours
associated with these collections, including comments on the following:
     Whether the proposed collection-of-information
requirements are necessary for the proper performance of the Agency's
functions, including whether the information is useful;
     The accuracy of OSHA's estimate of the burden (time and
cost) of the information-collection requirements, including the
validity of the methodology and assumptions used;
     The quality, utility, and clarity of the information
collected; and
     Ways to minimize the burden on employers who must comply,
for example, by using automated or other technological techniques for
collecting and transmitting information.
    The title, description of the need for and proposed use of the
information, description of the respondents, and frequency of response
of the information collections are described below, along with an
estimate of the annual reporting burden and cost as required by 5 CFR
1320.5(a)(1)(iv) and 1320.8(d)(2).
     Title: Cranes and Derricks in Construction (29 CFR part 1926
subpart CC).
    Description and Proposed Use of the Collections of Information: The
proposed standard would impose new information-collection requirements
for purposes of PRA-95. The collection-of-information requirements in
the proposed standard have not been approved by OMB. These provisions
are needed to protect the health and safety

of employees who work with equipment at construction worksites.
    The paperwork requirements would impose a duty to produce and
maintain records on employers who implement controls and take other
measures to protect employees from hazards related to cranes and
derricks used in construction. Accordingly, each construction business
that has employees who operate or are in the vicinity of cranes and
derricks would be required to have, as applicable, the following
documents on file and available at the job site: Equipment ratings,
employee training records, written authorizations from qualified
individuals, and qualification program audits. During an inspection,
OSHA would have access to the records to determine compliance under
conditions specified by the proposed standard. An employer's failure to
generate and disclose the information required in this standard will
affect significantly the Agency's effort to control and reduce injuries
and fatalities related to the use of cranes and derricks in
construction.
    Table C-1 below identifies and describes the new collections of
information contained in the proposed standard.

                   Table C-1--Collection-of-Information Requirements of the Proposed Standard
----------------------------------------------------------------------------------------------------------------
                                       Information-Collection Requirements
-----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------
 1926.1402(c)(2).....................   1926.1413(a)(4)(ii)(A)   1926.1427(c)(5)(iv)...   1926.1436(c)(2)(ii).
 1926.1403(b)........................   1926.1413(a)(4)(iii)(F   1926.1427(e)(1).......   1926.1436(c)(2)(iii).
                                        ).
 1926.1404(f)(2).....................   1926.1413(a)(4)(v)....   1926.1427(h)(1).......   1926.1436(d)(1).
 1926.1404(h)(4).....................   1926.1413(b)(3).......   1926.1428(a)(3).......   1926.1436(g)(1)(ii).
 1926.1404(h)(6).....................   1926.1413(c)(4).......   1926.1428(b)..........   1926.1436(g)(2).
 1926.1404(j)........................   1926.1414(c)(2)(iii)..   1926.1430(a)..........   1926.1436(g)(3).
 1926.1404(k)........................   1926.1414(c)(3)(i)....   1926.1430(b)..........   1926.1436(g)(4).
 1926.1404(m)(1)(i)..................   1926.14(c)(3)(iii)....   1926.1430(c)(1).......   1926.1436(h).
 1926.1407(b)(3)(i)(D)...............   1926.1415(a)(1)(ii)...   1926.1431(e)(12)......   1926.1437(c)(2)(ii).
 1926.1407(g)........................   1926.1416(d)..........   1926.1431(o)(3).......   1926.1437(g).
 1926.1408(b)(1).....................   1926.1416(e)..........   1926.1431(p)(4).......   1926.1437(h)(6).
 1926.1408(b)(4)(ii)(D)..............   1926.1416(e)(4).......   1926.1431(r)..........   1926.1437(m)(4).
 1926.1408(g)........................   1926.1417(b)(1).......   1926.1431(s)..........   1926.1437(n)(1).
 Table A.............................   1926.1417(b)(2).......   1926.1432(a)..........   1926.1437(n)(2).
 1926.1409...........................   1926.1417(b)(3).......   1926.1432(b)(2).......   1926.1437(n)(3)(i).
 1926.1410(c)(1).....................   1926.1417(c)(1).......   1926.1433(d)(1)(ii)...   1926.1437(n)(3)(ii).
 1926.1410(d)........................   1926.1417(e)(1)(iv)...   1926.1433(d)(5).......   1926.1437(n)(5)(v).
 1926.1410(d)(2)(iv).................   1926.1417(f)(1).......   1926.1434(a)(1)(i)....   1926.1437(n)(5)(vi).
 1926.1410(e)........................   1926.1417(j)..........   1926.1434(a)(1)(ii)...   1926.1439(e).
 1926.1410(f)........................   1926.1417(o)(3)(i)....   1926.1434(a)(2)(i)....   1926.1440(a).
 1926.1410(j)........................   1926.1421(a)..........   1926.1434(a)(3).......   1926.1441(b)(2)(i)(A).
 1926.1411(b)(4)(iii)................   1926.1422.............   1926.1434(b)..........   1926.1441(b)(2)(i)(B).
 Table T.............................   1926.1423(h)(2).......   1926.1435(c)..........   1926.1441(c)(2)(i).
 1926.1412(a)(1)(i)..................   1926.1424(a)(2)(i)....   1926.1435(e)(5).......   1926.1441(c)(2)(ii).
 1926.1412(b)(1)(ii)(A)..............   1926.1424(a)(2)(ii)...   1926.1435(e)(5)(v)....   1926.1441(c)(2)(iii).
 1926.1412(c)(2)(i)..................   1926.1427(a)..........   1926.1435(e)(6).......   1926.1441(c)(3)(i).
 1926.1412(e)(3)(i)..................   1926.1427(b)..........   1926.1435(e)(6)(vi)...   1926.1441(c)(3)(ii).
 1926.1412(e)(3)(ii).................   1926.1427(c)(1)(ii)...   1926.1435(f)(2)(i)....   1926.1441(e).
 1926.1412(f)(6).....................   1926.1427(c)(2)(i)....   1926.1435(f)(2)(ii)...   1926.1441(f).
 1926.1412(f)(7).....................   1926.1427(c)(5)(ii)...   1926.1436(b)(3).......
 1926.1412(g)(3).....................   1926.1427(c)(5)(iii)..   1926.1436(c)(2)(i)....
 1926.1412(h)........................   1926.1428(a)(2).......   1926.1436(f)(3).......
----------------------------------------------------------------------------------------------------------------

     Affected Public: Business or other for-profit.
    Number of Respondents: 159,715 firms.
    Frequency: On occasion (for most of the information-collection
requirements; determined by the use of cranes and derricks and employee
training and certification); annually (for equipment inspections).
    Average Time per Response: Varies from 10 seconds (sounding an
alarm) to two hours (developing written equipment operation
procedures).
    Estimated Total Burden Hours: 157,981 hours.
     Estimated Costs (Operation and Maintenance): $1.4 million.
    Submitting comments. Members of the public who wish to comment on
the paperwork requirements in this proposal must send their written
comments to the Office of Information and Regulatory Affairs, Attn:
OSHA Desk Officer (RIN 1218-AC01), Office of Management and Budget,
Room 10235, 725 17th Street, NW., Washington, DC 20503. The Agency
encourages commenters to also submit their comments on these paperwork
requirements to the rulemaking docket, along with their comments on
other parts of the proposed rule. For instructions on submitting these
comments to the rulemaking docket, see the sections of this Federal
Register notice titled DATES and ADDRESSES.
    Docket and inquiries. To access the docket to read or download
comments and other materials related to this paperwork determination,
including the complete Information Collection Request (ICR) (containing
the Supporting Statement (describing the paperwork determinations in
detail) and attachments) use the procedures described under the section
of this notice titled ADDRESSES. You also may obtain an electronic copy
of the complete ICR by visiting the Web page http://www.reginfo.gov/
public/do/PRAMain. Scroll under ``Currently Under Review'' to
``Department of Labor (DOL)'' to view all of the DOL's ICRs, including
those ICRs submitted for proposed rulemakings. To make inquiries, or to
request other information, contact Mr. Todd Owen, Directorate of
Standards and Guidance, OSHA, Room N-3609, U.S. Department

[[Continued on page 59913]]

]

[[pp. 59913-59954]] Cranes and Derricks in Construction

[[Continued from page 59912]]

of Labor, 200 Constitution Avenue, NW., Washington, DC 20210; telephone
(202) 693-2222.

D. Federalism

    The Agency reviewed the proposed rule according to the most recent
Executive Order (``E.O.'') on Federalism (E.O. 13132, 64 FR 43225).
This E.O. requires that Federal agencies, to the extent possible,
refrain from limiting State policy options, consult with States before
taking actions that restrict their policy options, and take such
actions only when clear constitutional authority exists and the problem
is national in scope. The E.O. allows Federal agencies to preempt State
law only with the expressed consent of Congress. In such cases, Federal
agencies must limit preemption of State law to the extent possible.
    Section 18 of the Occupational Safety and Health Act of 1970 (``the
Act''; 29 U.S.C. 667) expressly provides OSHA with authority to preempt
State occupational safety and health standards to the extent that the
Agency promulgates a Federal standard under Section 6 of the Act.
Accordingly, Section 18 of the Act authorizes the Agency to preempt
State promulgation and enforcement of requirements dealing with
occupational safety and health issues covered by OSHA standards unless
the State has an OSHA-approved occupational safety and health plan
(namely, is a State-Plan State). (See Gade v. National Solid Wastes
Management Association, 112 S. Ct. 2374 (1992).)
    With respect to States that do not have OSHA-approved plans, the
Agency concludes that this proposed rule would conform to the
preemption provisions of the Act. Additionally, Section 18 of the Act
prohibits States without approved plans from issuing citations for
violations of OSHA standards; the Agency finds that the proposed
rulemaking would not expand this limitation. Therefore, for States that
do not have approved occupational safety and health plans, this
proposed rule would not affect the preemption provisions of Section 18
of the Act.
    OSHA has authority under E.O. 13132 to promulgate the proposed rule
in 29 CFR part 1926 because the employee exposures related to cranes
and derricks used in construction addressed by the proposed
requirements are national in scope. The Agency concludes that the
requirements in this proposed rule would provide employers in every
State with critical information to use when protecting their employees
from the hazards presented when working with cranes and derricks.
However, while OSHA drafted the proposed requirements to protect
employees in every State, Section 18(c)(2) of the Act permits State-
Plan States and Territories to develop and enforce their own standards
for cranes and derricks used in construction provided these
requirements are at least as effective in providing safe and healthful
employment and places of employment as the final requirements that
result from this proposal.
    In summary, this proposed rule complies with E.O. 13132. In States
without OSHA-approved State Plans, Congress expressly provides for OSHA
standards to preempt State job safety and health rules in areas
addressed by the Federal standards; in these States, this rule limits
State policy options in the same manner as every standard promulgated
by the Agency. In States with OSHA-approved State Plans, this
rulemaking does not significantly limit State policy options.

E. State-Plan States

    Section 18(c)(2) of the Occupational Safety and Health Act of 1970
(29 U.S.C. 667(c)(2)) requires State-Plan States to adopt mandatory
standards promulgated by OSHA. Accordingly, the 24 States and two
Territories with their own OSHA-approved occupational safety and health
plans would have to adopt provisions comparable to the provisions in
this proposed rule within six months after the Agency publishes the
final rule that it develops from this proposal. The Agency believes
that the proposed rule would provide employers in State-Plan States and
Territories with critical information and methods necessary to protect
their employees when working with cranes and derricks in construction.
The 24 States and two Territories with State Plans are: Alaska,
Arizona, California, Hawaii, Indiana, Iowa, Kentucky, Maryland,
Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Puerto
Rico, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington,
and Wyoming. Connecticut, New Jersey, New York, and the Virgin Islands
have OSHA-approved State Plans that apply to State and local government
employees only. Until a State-Plan State/Territory promulgates its own
comparable provisions based on the final rule developed from this
proposal, Federal OSHA will provide the State/Territory with interim
enforcement assistance, as appropriate.

F. Unfunded Mandates Reform Act

    OSHA reviewed this proposed rule according to the Unfunded Mandates
Reform Act of 1995 (``UMRA''; 2 U.S.C. 1501 et seq.) and Executive
Order 12875 (58 FR 58093). As discussed above in section V.B. of this
preamble (``Preliminary Economic Analysis and Initial Regulatory
Flexibility Analysis''), the Agency estimates that compliance with this
proposed rule would require private-sector employers to expend about
$123 million each year. However, while this proposed rule establishes a
federal mandate in the private sector, it is not a significant
regulatory action within the meaning of Section 202 of the UMRA (2
U.S.C. 1532).
    Under voluntary agreement with OSHA, some States enforce compliance
with their State standards on public sector entities, and these
agreements specify that these State standards must be equivalent to
OSHA standards. Thus, although OSHA has included compliance costs for
the affected public sector entities in its analysis of the expected
impacts associated with the proposal, the proposal would not involve
any unfunded mandates being imposed on any State or local government
entity. Consequently, this proposed rule does not meet the definition
of a ``Federal intergovernmental mandate'' (see Sec. 421(5) of the UMRA
(2 U.S.C. 658(5))). Therefore, for the purposes of the UMRA, the Agency
preliminarily certifies that this proposed rule does not mandate that
State, local, and tribal governments adopt new, unfunded regulatory
obligations, nor does the proposed rule increase the expenditures by
the private sector of more than $100 million a year.

G. Applicability of Existing Consensus Standards

    Some of the types of equipment subject to this proposed standard
are addressed by current national consensus standards in the ASME B30
series, including: ASME B30.5-2004, ``Mobile and Locomotive Cranes'';
ASME B30.6-2003, ``Derricks''; ASME B30.8-2004, ``Floating Cranes and
Floating Derricks''; ASME B30.3-2004, ``Construction Tower Cranes'';
ASME B30.14-2004, ``Side Boom Tractors''; and ASME B30.2-2001,
``Overhead and Gantry Cranes.'' In addition, ASME B30.7-2005, ``Base-
Mounted Drum Hoists,'' addresses a type of equipment that is often a
component of derricks, and ASME B30.23-2005, ``Personnel Lifting
Systems,'' addresses issues that are covered by proposed Sec.
1926.1431, Hoisting personnel.
    The Committee consulted these ASME standards (or the most current
versions available at the time) and other resources in developing its
proposal. In most instances, the ASME standards that the Committee
consulted were

entered into the docket, including: ASME B30.5-2000 (OSHA-S030-2006-
0663-0334); ASME B30.5a-2002 Addenda (OSHA-S030-2006-0663-0335); ASME
B30.6-2003 (OSHA-S030-2006-0663-0337); ASME B30.17-2003 (OSHA-S030-
2006-0663-0338); ASME B30.3-1996 (OSHA-S030-2006-0663-0353); and ASME
B30.23-1998 (OSHA-S030-2006-0663-0354). Where newer versions of the
ASME standards were issued after the Committee finished its work, OSHA
has examined the updated standards to determine if their provisions
deviate in a significant way from provisions on which C-DAC relied.
Those updated standards have been entered into the record of this
rulemaking. For the most part, OSHA did not find significant deviations
between the updated versions and the versions before the Committee. In
the few instances where deviations occurred, OSHA has identified those
deviations and asked for public comment on any issues they raise.
    As discussed in detail in the Summary and Explanation of the
proposed standard, a number of provisions in this proposal contain
concepts that are similar to those in provisions in the various ASME
standards. However, the Committee determined in most instances that,
for reasons of enforceability, clarity or ease of use, the wording of
those concepts needed to be modified.
    For some issues, the ASME standards do not address issues covered
by this proposal, or the Committee determined that a different approach