[Federal Register Volume 87, Number 218 (Monday, November 14, 2022)]
[Rules and Regulations]
[Pages 68270-68310]
[FR Doc No: 2022-23666]

Vol. 87

Monday,

No. 218

November 14, 2022

Part III

Department of Homeland Security

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Coast Guard

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46 Parts 121, 160, et al.

Survival Craft Equipment--Update to Type Approval Requirements; Final
Rule

Federal Register / Vol. 87 , No. 218 / Monday, November 14, 2022 /
Rules and Regulations

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

46 CFR Parts 121, 160, 169, 184, and 199

[Docket No. USCG-2020-0107]
RIN 1625-AC51

Survival Craft Equipment--Update to Type Approval Requirements

AGENCY: Coast Guard, Department of Homeland Security (DHS).

ACTION: Final rule.

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SUMMARY: The Coast Guard is updating the type approval requirements for
certain types of equipment that survival craft are required to carry on
U.S.-flagged vessels. This rule will remove Coast Guard type approval
requirements for nine of these types of survival craft equipment and
replace them with the requirement that the manufacturer self-certify
that the equipment complies with a consensus standard.

DATES: This final rule is effective December 14, 2022.
    The incorporation by reference of certain publications listed in
the rule is approved by the Director of the Federal Register on
December 14, 2022. The incorporation by reference of certain other
publications listed in the rule were approved by the Director of the
Federal Register on October 1, 1996.

ADDRESSES: To view documents mentioned in this preamble as being
available in the docket, go to https://www.regulations.gov, type USCG-
2020-0107 in the search box and click ``Search.'' Next, in the Document
Type column, select ``Supporting & Related Material.''

FOR FURTHER INFORMATION CONTACT: For information about this document,
call or email Ms. Stephanie Groleau, Lifesaving & Fire Safety Division
(CG-ENG-4), Coast Guard; telephone<PHONE_NUMBER>, email
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents for Preamble

I. Abbreviations
II. Basis, Purpose, and Regulatory History
III. Background
IV. Discussion of Comments
V. Discussion of Final Rule and Changes From NPRM
VI. Incorporation by Reference
VII. Regulatory Analyses
    A. Regulatory Planning and Review
    B. Small Entities
    C. Assistance for Small Entities
    D. Collection of Information
    E. Federalism
    F. Unfunded Mandates
    G. Taking of Private Property
    H. Civil Justice Reform
    I. Protection of Children
    J. Indian Tribal Governments
    K. Energy Effects
    L. Technical Standards and Incorporation by Reference
    M. Environment

I. Abbreviations

ASTM ASTM, International
BLS U.S. Bureau of Labor Statistics
CFR Code of Federal Regulations
CG-ENG-4 Office of Design and Engineering Standards, Lifesaving &
Fire Safety Division
CGMIX U.S. Coast Guard Maritime Information Exchange
COA Certificate of approval
DHS Department of Homeland Security
ECEC Employer Costs for Employee Compensation
FDA U.S. Food and Drug Administration
FR Federal Register
IBA Inflatable buoyant apparatus
IBC Code International Code for the Construction and Equipment of
Ships Carrying Dangerous Chemicals in Bulk
IGC Code Amendments to the International Code for the Construction
and Equipment of Ships Carrying Liquefied Gases in Bulk
ICR Information collection request
IMO International Maritime Organization
ISO International Organization for Standardization
LSA Code Life-Saving Appliances Code
MISLE Marine Information for Safety and Law Enforcement
NAICS North American Industry Classification System
NPRM Notice of proposed rulemaking
OES U.S. Bureau of Labor Statistics Occupational Employment
Statistics
OMB Office of Management and Budget
OPM Office of Personnel Management
OTC Over-the-counter
RA Regulatory analysis
SOLAS International Convention for the Safety of Life at Sea
Sec.  Section
U.S.C. United States Code

II. Basis, Purpose, and Regulatory History

    The legal authority for this rule is found in Title 46 of the
United States Code (U.S.C.) Sections 2103, 3103, 3306, 3703, 4102,
4302, 4502, 7101, and 8101. The Secretary of the Department of Homeland
Security (DHS) has delegated these statutory authorities to the Coast
Guard pursuant to 14 U.S.C. 502 through DHS Delegation No. 00170.1,
Revision No. 01.2, paragraph (II)(92)(a), (b), (e), and (f).
Additionally, 14 U.S.C. 102(3) grants the Coast Guard broad authority
to promulgate and enforce regulations for the promotion of safety of
life and property on waters subject to the jurisdiction of the United
States.
    The purpose of this rule is to update the type approval
requirements for 12 types of survival craft equipment that survival
craft are required to carry on certain, specified U.S.-flagged
vessels--bilge pumps, compasses, fire extinguishers, first-aid kits,
fishing kits, hatchets, jackknives, knives, signaling mirrors,
provisions (food rations), emergency drinking water, and sea anchors--
as well as some of the survival craft equipment required for sailing
school vessels. For nine of these types of equipment, this rule will
replace the Coast Guard type approval requirement with a requirement
that the manufacturer self-certify that the equipment complies with a
consensus standard: bilge pumps, compasses, first-aid kits, fishing
kits, hatchets, jackknives, mirrors, sea anchors, and water. Type
approval is the primary process for equipment and materials to receive
Coast Guard approval. Updating type approval requirements for survival
craft equipment will result in cost savings to equipment manufacturers,
vessel owners and operators, and the Coast Guard.
    The Coast Guard issued a notice of proposed rulemaking (NPRM) on
October 5, 2020, and solicited public comment on the proposal during a
comment period of 60 days.\1\ The comment period closed on December 4,
2020. The Coast Guard received 13 comment submissions, which are
discussed later in this document.
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    \1\ 85 FR 62842.
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III. Background

    Many of the current requirements for survival craft equipment were
developed in the 1950s and 1960s and have not been significantly
updated since they were published. After thorough review of these
requirements, as well as Coast Guard enforcement procedures, current
maritime industry practice, and the availability of new consensus
standards, we believe that the additional scrutiny provided by Coast
Guard type approval does not increase the safety of the following nine
types of survival craft equipment: bilge pumps, compasses, first-aid
kits,\2\ fishing kits, hatchets, knives (including jackknives),
mirrors, sea anchors, and emergency drinking water.
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    \2\ Different first-aid kits are required for different survival
craft, and this is explained in section IV of this rule under First-
Aid Kits.
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    For these types of equipment, the current Coast Guard type approval
requirements are outdated and overly prescriptive. This places a burden
on the equipment manufacturers, which, in turn, affects the design
costs of complying with the outdated standard, the administrative
overhead costs, and the time-to-market costs of manufacturing and
selling equipment.

The requirements also place a financial burden on the vessel owners and
operators who are required to carry this specific approved equipment on
board their survival craft. This equipment is frequently more costly
and more difficult to obtain than similar products that are not type-
approved. Finally, the requirements place a burden on the Coast Guard
to review and approve this equipment without commensurate increases in
safety.

IV. Discussion of Comments

    The Coast Guard received 13 comment submissions in response to the
NPRM. Of those 13 comments, 1 was a duplicate and 1 was unrelated to
the rulemaking. The remaining 11 comments were from maritime
organizations, private companies, and individuals. Four comments we
classified as general comments, two comments concerned technical
standards, and five comments concerned first-aid kits. Below, we
discuss each comment and our responses.

General

    The Coast Guard received four comments on the NPRM that we
categorized as general comments. One comment supported the proposed
regulatory changes for approval requirements for first-aid kits. The
Coast Guard acknowledges this comment.
    Two commenters expressed concerns that removing type approval
requirements could decrease the quality of survival craft equipment. We
disagree. Even without a type approval requirement, the following
checks will remain in place. For emergency drinking water in survival
craft and rescue boats, the water quality will be verified by the local
municipality or by an independent laboratory accepted by the Coast
Guard, as required by 46 CFR 199.175(b)(40). Coast Guard-approved
liferaft servicing facilities inspect survival equipment packed in
inflatable liferafts prior to packing. Coast Guard marine inspectors
also regularly check equipment not packed in inflatable liferafts, such
as that in a lifeboat or rescue boat, or the first-aid kits carried on
small passenger vessels, when conducting the required inspections on
board commercial vessels.
    Additionally, one commenter, a manufacturer of the approved Coast
Guard items, expressed multiple concerns regarding this rule and the
Coast Guard's regulatory analysis on its estimate of the impacts in the
NPRM. This commenter said that removing type approval requirements will
cause the market to be flooded with substandard products, leading to
revenue losses to the company. The commenter also said that the
liferaft and lifeboat industry has consolidated and there is little
competition, and, therefore, will not pass savings on to consumers.
    For the reasons explained in our response to the two commenters
above, we do not expect reduced quality in the equipment that is no
longer required to be type-approved. We therefore do not expect a flood
of products of reduced quality that drive down prices. With this final
rule, prescriptive requirements will be replaced by consensus
standards. Conforming to these international consensus standards will
maintain the same level of safety without imposing unnecessary burdens
on the public and provide alternatives for compliance. These compliance
alternatives should result in cost savings to the directly impacted
entities, which are manufacturers and vessel owners and operators. The
Coast Guard does not have adequate industry information or data to
estimate secondary impacts and indicate whether these savings will be
passed on to the final consumers or end users of services provided by
vessel owners and operators.
    The commenter also suggested that some could incur additional
testing costs as a result of this rule. Based on a review of the new
and existing standards, the Coast Guard has not found that
manufacturing firms will have new testing requirements under the
International Organization for Standardization (ISO) standards.
    The commenter suggested that, as an alternative to the removal of
type approval requirements, the manufacturer could cover the cost of
the certificate of approval (COA). Requiring manufacturers to cover the
cost of the COA would result in additional costs to manufacturers
without any attendant safety benefits.
    Finally, the commenter asserted that our per-device savings
estimates are too high and not the going rates in the industry. In
preparing our economic analysis, we relied primarily on websites
listing the retail prices of different products that were sold under
ISO standards instead of Coast Guard standards. We believe that the
reason our prices appear to be high to the commenter is because our
analysis was based on retail prices rather than wholesale prices, or
the prices that manufacturers use to sell their products to businesses.
Using retail prices is a common approach across Coast Guard rulemaking,
because we do not have access to consistent wholesale price data across
the industry.

F1003 and F1014 Standards

    The Coast Guard received two comments recommending incorporation of
ASTM F1003 (2019), ``Standard Specification for Searchlights on Motor
Lifeboats,'' and ASTM F1014 (2020), ``Standard Specification for
Flashlights on Vessels.'' These 2019 and 2020 standards are more recent
editions of the ASTM standards we proposed to adopt.
    However, these standards were updated after the NPRM was developed,
and so we were unable to include them in our proposed rule. The more
recent standards contain significant differences as compared to the
prior editions (the ones we incorporate in this rule), such that more
evaluation is necessary. We will consider incorporating these standards
in a future rulemaking.

First-Aid Kits

    The Coast Guard received five comments concerning the proposed
changes to first-aid kits. The comments discussed contents of the
first-aid kits, as well as technical standards that apply to first-aid
kits.
    Two commenters supported the proposed use of commercially available
first-aid kits, to remove the burden of assembling very specific kit
components.
    Three commenters called for specified first-aid kit components,
rather than leaving the exact number and size of items up to
manufacturers so long as the kit meets ISO 18813:2006. These commenters
said the kit contents should be standardized, and expressed concern
that manufacturers would not provide adequate kits. One commenter also
said that ISO 18813:2006 is not a widely accepted standard and may soon
be revised; that commenter suggested the Coast Guard should develop its
own standard instead. Another commenter supported the use of the ISO
standard. We believe that the contents described in ISO 18813:2006 are
sufficient to meet the needs of basic first-aid kits required by
mariners in a survival situation. The ISO standard specifies design,
performance, and use of various items of survival equipment carried in
survival craft and rescue boats complying with the International
Convention for the Safety of Life at Sea (SOLAS), 1974 (as amended),
and the International Maritime Organization (IMO) Life-Saving Appliance
Code (LSA Code). The 2006 edition is the most current version of this
standard that is available at this time.
    During periodic shipboard inspections by both Coast Guard-licensed
mariners and Coast Guard

marine inspectors, first-aid kits not packed in inflatable liferafts
are examined to ensure that they contain all the items listed in the
provided instructions, that each unit carton is in an intact waterproof
package, and that they meet the applicable regulatory requirements.
First-aid kits packed in inflatable liferafts are inspected by Coast
Guard-approved liferaft servicing facilities, also to ensure that they
contain all the required items.
    One commenter specifically called for a particular Coast Guard-
approved watertight soft plastic pouch to contain the first-aid kit,
because rigid plastic containers can become brittle and because that
pouch is proven to meet the applicable durability requirements. ISO
18813:2006 discourages the use of rigid plastic cases that can shatter.
If the case shatters, an entirely new kit must be purchased because it
is in a not-as-approved condition, and Coast Guard inspectors would
give the vessel a deficiency for not having an approved and in-working-
condition piece of equipment. This would increase costs to the vessel.
    One commenter noted that the U.S. Food and Drug Administration
(FDA) does not routinely approve over-the-counter (OTC) products; it
only reviews active ingredients. Another comment inquired about the FDA
regulatory status, product form, or type of delivery for two topical
preparations in the ISO 18813 requirements.
    It is up to the first-aid kit manufacturer to determine in what
form the medicinal products are to be provided to meet the intended
needs of the first-aid kit. However, medicinal products must meet the
applicable OTC drug requirements outlined in title 21 of the Code of
Federal Regulations (CFR) part 330, which contains FDA's applicable OTC
requirements. In response to these comments, in this rule we revised
the regulatory text of Sec.  199.175(b)(10)(ii) to reference 21 CFR
part 330.
    One commenter asked that the Coast Guard remove the requirement for
specific items with an expiration date (such as aspirin) and allow for
equivalent alternatives. The commenter said that getting supplies
delivered to remote locations can be challenging. The expiration date
of OTC medications is typically between one and five years after
manufacture. The commenter did not specify an alternative item without
an expiration date, but the Coast Guard believes that a year or more is
a reasonable period to plan for replacing first-aid supplies. In
general, the Coast Guard believes that expiration dates are acceptable
and can help ensure that the first-aid kit is reviewed and refreshed at
intervals. The Food and Drug Administration requires OTC medications
have expiration dates (see 21 CFR 211.137 and 211.166).
    The same commenter recommended that vessel operators be allowed to
exclude analgesics (pain relief medication) from first-aid kits. This
commenter said that companies often prohibit their vessel crew members
from giving out analgesic medication because of possible adverse side
effects or interactions with other medication. In support of this
recommendation, the commenter said that most passenger vessels operate
near shore with easy access to shoreside medical services.
    While access to shoreside medical resources may be available in
certain areas of operation, these should not be relied on to provide
the required first-aid supplies. Shoreside medical resources will not
be readily available to someone with an injury or emergency on the
vessel. The first-aid kit for survival craft is intended to be used in
an emergency away from shore.
    Licensed mariners operating vessels in commercial service are
required to have basic first-aid training. Any application of first aid
should be given at the discretion of the licensed mariner and not at a
level beyond the training or capability of the mariner administering
the first aid. Analgesics are common OTC medications that do not
require medical supervision, and the decision to take them is up to the
person who requests them. Accordingly, the Coast Guard has decided to
retain the requirement for analgesics in first-aid kits.

V. Discussion of Final Rule and Changes From NPRM

    This final rule amends several approval and carriage requirements
in title 46 CFR. Specifically, this final rule updates the requirements
in part 199, subchapter W, related to the equipment on survival craft
and rescue boats on inspected vessels by replacing the requirement to
carry Coast Guard-approved equipment with self-certification to
voluntary consensus standards for certain equipment. This rule also
makes conforming changes to part 169, subchapter R, for sailing school
vessels that are not covered by subchapter W. In addition, this final
rule revises part 160, subchapter Q, to remove approval standards for
the survival craft equipment that is no longer required to be approved
by the Coast Guard, and it updates the requirements for approval of
emergency provisions to replace prescriptive Coast Guard requirements
with consensus standards. A new subpart 160.046, Emergency Provisions,
is added, to consolidate the applicable standards. Finally, this rule
removes the requirement in part 121, subchapter K, and part 184,
subchapter T, that first-aid kits carried on small passenger vessels
must be approved by the Coast Guard, and updates those requirements to
consensus standards to align with the revised approval requirements.
    This final rule includes incorporation by reference of several
voluntary consensus standards consistent with the National Technology
Transfer and Advancement Act of 1995, Public Law 104-113 (codified as a
note to 15 U.S.C. 272). Three of the consensus standards this rule
incorporates are international standards: ISO 18813:2006, ``Ships and
marine technology--Survival equipment for survival craft and rescue
boats'' (referred to as ISO 18813); ISO 17339:2018, ``Ships and marine
technology--Sea anchors for survival craft and rescue boats'' (referred
to as ISO 17339); and ISO 25862:2009, ``Ships and marine technology--
Marine magnetic compasses, binnacles and azimuth reading devices''
(referred to as ISO 25862).
    While the IMO does specify some standards for survival craft
equipment affected by this rule, it does not stipulate that the
affected survival craft equipment be approved by the Administration. In
some cases (such as first-aid kits and drinking water), the LSA Code
references ISO 18813 as an acceptable standard for the equipment to
meet, whereas in others (such as fishing tackle), the LSA Code merely
requires that the equipment be carried aboard the specified survival
craft.
    A more detailed explanation of the amendments to the aforementioned
sections can be found in the NPRM. A number of non-substantive changes
from the NPRM are made with this final rule to correct typographical,
grammar, and format errors or issues, as well as for clarification
purposes.
    Lastly, as a result of public comment, this final rule requires
that medicinal products meet the applicable OTC drug requirements as
outlined in 21 CFR part 330. This administrative change is simply
updating an improper reference.

VI. Incorporation by Reference

    Material incorporated by reference is currently listed in 46 CFR
199.05 and is added to the new Sec.  160.046-3. Under 5 U.S.C. 552(a)
and 1 CFR part 51, a publication is eligible for incorporation by
reference if it meets Office of the Federal Register policies and is
reasonably available to and usable by the class of persons affected.

Regulations in part 51 require that agencies discuss, in the final
rule, ways that the materials the agency incorporates by reference are
reasonably available, to interested parties and how interested parties
can obtain the materials. In addition, the preamble to the final rule
must summarize the material.
    In accordance with the OFR's requirements, section VII.L. of this
final rule summarizes the standards that the Coast Guard incorporates
by reference in Sec. Sec.  160.046-3 and 199.05. Interested persons
have access to this material through their normal course of business,
may purchase it from the organization, or may view a copy at Coast
Guard Headquarters.

VII. Regulatory Analyses

    We developed this rule after considering numerous statutes and
Executive orders related to rulemaking. Below, we summarize our
analyses based on these statutes or Executive orders.

A. Regulatory Planning and Review

    Executive Orders 12866 (Regulatory Planning and Review) and 13563
(Improving Regulation and Regulatory Review) direct agencies to assess
the costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility.
    The Office of Management and Budget (OMB) has not designated this
rule a significant regulatory action under section 3(f) of Executive
Order 12866. Accordingly, OMB has not reviewed it. A regulatory
analysis (RA) follows.
    The Coast Guard received several public comments on the NPRM, as
discussed in section IV. of the preamble to this final rule. In
response to a comment, in this final rule we are making an editorial
change to 46 CFR 199.175(b)(10) that has no cost impact. See table 1.
    Additionally, we are replacing prescriptive requirements with
international standards that provide alternatives for compliance, which
should result in cost savings to impacted entities. We also made some
changes to the regulatory analysis, including updating the population
of affected entities, and the wage rate using 2020 estimates, and
removing the renewal instruction, because it is not applicable to this
rule.

                                    Table 1--Changes From NPRM to Final Rule
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               Section                  Description of change         Explanation         Cost impact of change
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Sec.   199.175(b)(10)................  Editorial change that    Update the language to   No impact because it is
                                        corrects a reference.    correctly discuss the    updating an improper
                                                                 FDA's drug approval      reference.
                                                                 process.
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    With this final rule, the Coast Guard removes the requirement for
nine types of survival craft equipment to be approved by the Coast
Guard from 46 CFR part 160 in subchapter Q (Equipment, Construction,
and Materials: Specifications and Approval) and from Sec.  199.175
(Survival Craft and Rescue Boat Equipment). The requirement for
approvals on these nine types of equipment (bilge pumps, compasses,
first-aid kits, fishing kits, hatchets, jackknives, mirrors, sea
anchors, and water) will be replaced by a self-certification
requirement, in order to comply with the LSA Code. For those types of
equipment that still require a COA, we do not estimate any changes in
costs or cost savings.\3\ Finally, this rule updates the survival craft
requirements for sailing school vessels found in Sec. Sec.  169.525
through 169.529, eliminating the unique requirements for survival craft
equipment on these vessels.
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    \3\ Knives are not required to be Coast Guard-approved; however,
they must meet the requirements in Section <IP_ADDRESS>.2 of the LSA
Code. This is an administrative change that will lead to no cost or
cost savings.
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    Table 2 provides a summary of the affected population, costs, cost
savings, and benefits of this rule. The affected population includes
the manufacturers of survival craft equipment and the vessels equipped
with survival craft. We estimate the cost savings to manufacturers by
reducing reporting, recordkeeping, and production requirements of this
survival craft equipment. We estimate the cost savings to vessel owners
and operators by the price reductions in survival craft equipment, and
we estimate the cost savings for the Government for reducing the review
necessary for certain equipment. We estimate an annualized cost savings
to industry of $303,805 (with a 7-percent discount rate) and an
annualized cost savings to the Government of $10,087, for a total
annualized cost savings of $313,892.\4\
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    \4\ This analysis assumes the implementation year for this rule
will be 2021.

  Table 2--Summary of the Affected Population, Costs, Cost Savings, and
                                Benefits
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           Category                             Summary
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Applicability................  Revises the approval requirements
                                specific to nine types of survival craft
                                equipment by removing the Coast Guard
                                type approval requirements and, instead,
                                adopting a voluntary consensus standard,
                                ISO 18813, ``Ships and marine
                                technology--Survival equipment for
                                survival craft and rescue boats.'' Also
                                retains requirements for Coast Guard
                                approval of emergency provisions, but
                                revises the requirements to refer to ISO
                                18813 instead of prescriptive Coast
                                Guard regulations.
Affected Population..........  Includes 16 manufacturers of 28 unique
                                Coast Guard-approved products for 9
                                types of equipment; 14,747 existing U.S.-
                                flagged vessels with 31,729 survival
                                craft; and 113 new U.S.-flagged vessels
                                annually with 449 survival craft.
Costs........................  There will be no costs to industry or the
                                Federal Government as this rule will
                                reduce the burden(s).
Benefits.....................  There are non-monetary benefits to owners
                                and operators of vessels with survival
                                craft in having a larger selection of
                                equipment to choose from, allowing for
                                potential operational flexibility.
Industry Cost Savings *......  Annualized: -$303,805, 10-Year: -$2.13
                                million.

Government Cost Savings......  Annualized: -$10,087, 10-Year: -$70,847.
Total Cost Savings...........  Annualized: -$313,892, 10-Year: -$2.20
                                million.
------------------------------------------------------------------------
* The Industry Cost Savings, Government Cost Savings, and Total Cost
  Savings are all discounted at 7 percent.

Affected Population
    This rule impacts three separate affected populations. First, this
rule impacts manufacturers of Coast Guard-approved equipment because it
changes the standards and approval process for nine types of survival
craft equipment. Second, this rule impacts any new and existing U.S.-
flagged vessels that carry survival craft because it will reduce the
cost of buying and replacing survival craft equipment. Third, this rule
impacts small passenger vessels inspected under subchapter K or T. They
are required to maintain a separate first-aid kit stowed on board, and
this rule reduces the cost of replacing first-aid kits. This rule also
removes Table 169.527 from part 169 and removes the requirements for
equipment outlined in Sec.  169.529(a) through (mm) to conform to the
changes made in 46 CFR part 199.
    Data on manufacturers comes from the U.S. Coast Guard Maritime
Information Exchange (CGMIX),\5\ which is a public-facing version of
the Marine Information for Safety and Law Enforcement (MISLE) database,
unless otherwise specified. For each subchapter of inspected vessels
that are required to carry survival craft, we used the MISLE database
to estimate the number of vessels that will be affected by this rule.
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    \5\ https://cgmix.uscg.mil/.
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Manufacturers of Coast Guard Approved Equipment
    The Coast Guard is eliminating approval requirements for nine types
of survival craft equipment, discussed in detail in section V of this
rule. These nine types of equipment include: (1) bilge pumps, (2)
compasses, (3) first-aid kits for lifeboats and for liferafts, (4)
fishing kits, (5) hatchets, (6) jackknives, (7) signaling mirrors, (8)
sea anchors, and (9) emergency drinking water. For these 9 types of
survival equipment, there are 28 unique Coast Guard type-approved
products.\6\ This rule impacts manufacturers of products currently on
the market as well as newly approved products. Currently approved
products in use on survival craft will remain acceptable for the
purpose of carriage after this rule's implementation.
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    \6\ Type Approval is the primary process for equipment and
materials to receive Coast Guard approval. The certificate is valid
for 5 years, and the approval is listed on the CGMIX.
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    The 2019 information collection request (ICR) ``Supporting
Statement for Title 46 CFR Subchapter Q: Lifesaving, Electrical,
Engineering and Navigation Equipment, Construction and Materials &
Marine Sanitation Devices (33 CFR part 159)'' (OMB Control Number:
1625-0035) estimates that companies will seek Coast Guard approval for
3 percent of the number of survival craft equipment product types on
the market each year. The Coast Guard estimates that each new product
approval replaces a preexisting product approval, such that the total
number of approved products will not change each year, as the number of
newly approved products has historically been small.
    Table 3 presents the annual average of new products each year for
the nine types of survival craft equipment. To calculate the annual
average of new products, we multiplied the values in the ``Number of
Approved Products'' column (a), which contains the number of existing
approved products for each type of survival craft equipment, by 3
percent, from the ``Percentage of New Approvals Each Year'' column,
(b).

                        Table 3--Number of Products Currently Approved by the Coast Guard
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                                                                                Annual
                                                                     Number of    Percentage  of      average
                    Equipment                        Approval        approved     new  approvals   number of new
                                                      series        products *      each year **   products each
                                                                                year
                                                                             (a)             (b)     (c) = (a) x
                                                                                (b)
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Bilge pump......................................         160.044               3               3            0.09
Compass.........................................         160.014               3               3            0.09
First-aid kit for Lifeboats.....................         160.041               5               3            0.15
First-aid kit for Liferafts.....................         160.054               5               3            0.15
Fishing kit.....................................         160.061               1               3            0.03
Hatchet.........................................         160.013               1               3            0.03
Jackknife.......................................         160.043               1               3            0.03
Mirror, Signalling..............................         160.020               2               3            0.06
Sea anchor......................................         160.019               1               3            0.03
Water...........................................         160.026               6               3            0.18
                                                 ---------------------------------------------------------------
    Total.......................................  ..............              28  ..............               1
----------------------------------------------------------------------------------------------------------------
Sources:
* CGMIX data pull, March 2021.
** ``Supporting Statement for Title 46 CFR Subchapter Q: Lifesaving, Electrical, Engineering and Navigation
  Equipment, Construction and Materials & Marine Sanitation Devices (33 CFR 159)'' (OMB Control Number: 1625-
  0035).
Note: Values may not sum due to rounding.

U.S.-Flagged Vessels That Carry Coast Guard-Approved Equipment
    This rule impacts a total of 14,747 existing vessels. These
vessels, which are categorized by subchapter, are required to carry
survival craft in accordance with the applicable regulations. Of these
vessels, we estimate the total amount of survival craft maintained by
the affected population to be 31,729. Table 4 shows the breakdown of
the survival craft across the existing vessel population as follows:
2,612 inflatable buoyant apparatuses (IBAs), 23,748 liferafts, 2,835
lifeboats, and 2,534 rescue boats.

                                                      Table 4--Vessel and Survival Craft Population
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               IBAs         Inflatable       Lifeboats     Rescue boats    All survival
                                                           Total number  ----------------    liferafts   --------------------------------      craft
            Subchapter                 Type of vessel     of vessels (a)                 ----------------                                ---------------
                                                                             Total (b)       Total (c)       Total (d)       Total (e)       Total (f)
--------------------------------------------------------------------------------------------------------------------------------------------------------
C.................................  Commercial Fishing             6,022             248           6,267             141              52           6,708
                                     Vessels.
C.................................  Uninspected                      173              10             258               2               7             277
                                     Passenger Vessels.
D.................................  Tank................             323               3             706             543              49           1,301
H.................................  Passenger...........             191             640             444              91             286           1,461
I.................................  Cargo...............           1,037               3           3,247           1,200             618           5,068
I-A...............................  Mobile Offshore                   57               0             263             623              37             923
                                     Drilling Units.
K.................................  Small Passenger.....             311             512             950               2             164           1,628
L.................................  Offshore Supply                  338               0           1,393              55             322           1,770
                                     Vessels.
M.................................  Towing Vessels......           1,434              91           1,485               2              51           1,629
R.................................  Nautical Schools....              29               2             140              79              22             243
R.................................  Sailing Schools.....              10               0              24               1               7              32
T.................................  Small Passenger.....           4,231           1,025           7,506               5             830           9,366
U.................................  Oceanographic                     74               3             260              53              36             352
                                     Research.
Other Vessels.....................  ....................             517              75             805              38              53             971
                                                         -----------------------------------------------------------------------------------------------
    Total.........................  14,747..............           2,612          23,748           2,835           2,534          31,729
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Table 5 presents vessels by the subchapter to which they are
inspected in 46 CFR. ``Other vessels'' includes public and recreational
vessels not subject to inspection. The owners and operators of the
14,747 identified vessels will experience cost savings from the lower
estimated cost of replacing equipment. We used this existing vessel
population data from MISLE and multiplied it by the average number of
IBAs, liferafts, lifeboats, and rescue boats per vessel, which we also
retrieved from MISLE, to obtain our estimated survival craft
population. The estimated survival craft population is the number of
survival craft that will need to replace non-durable Coast Guard-
approved equipment over the next 10 years. The replacement equipment
will be less expensive, because the replacement equipment will not need
Coast Guard approval. Those vessels with previously approved survival
craft equipment will not be required to replace their survival craft
equipment until the equipment expires or becomes unserviceable.
    After establishing the existing number of current survival craft,
we then estimated the growth in the number of survival craft each year
in order to project our affected population for the next 10 years. To
calculate the number of new survival craft each year, we multiplied the
``Number of New Vessels per Year'' by each ``Average per Vessel''
column to obtain our annual totals for each new survival craft type.\7\
We estimate that 25 new IBAs, 222 new liferafts, 33 new lifeboats, and
31 new rescue boats will be outfitted with equipment subject to this
rule each year.
---------------------------------------------------------------------------

    \7\ We calculate the ``Number of New Vessels per Year'' column
by taking the total number of new vessels by subchapter by year from
the MISLE database, and the ``Average per Vessel'' column by
dividing column (b) by column (a) in table 4.
---------------------------------------------------------------------------

    We then sum the totals for each survival craft type across each
affected subchapter to obtain our estimated population of new survival
craft each year for this final rule. This annual growth in the survival
craft population provides an estimate of the number of new survival
craft that will enter the market each year. The vessel owners and
operators of these craft will experience cost savings from buying some
equipment, as discussed in this final rule, which will no longer need
Coast Guard approval. Table 5 presents the estimated total number of
new survival craft each year.

                                                                           Table 5--Average Survival Craft per Vessel
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                IBAs              Inflatable liferafts            Lifeboats               Rescue boats
                                                                             New vessels -------------------------------------------------------------------------------------------------------
                 Subchapter                          Type of vessel            per year   Average per               Average per               Average per               Average per
                                                                                vessel       Total        vessel       Total        vessel       Total        vessel       Total
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
C..........................................  Commercial Fishing Vessels....           19         0.04            1         1.04           20         0.02            0         0.01            0
C..........................................  Uninspected Passenger Vessels.            1         0.06            0         1.49            1         0.01            0         0.04            0
D..........................................  Tank..........................            5         0.01            0         2.19           11         1.68            8         0.15            1

H..........................................  Passenger.....................            2         3.35            7         2.32            5         0.48            1         1.50            3
I..........................................  Cargo.........................            9            0            0         3.13           28         1.16           10         0.60            5
I-A........................................  Mobile Offshore Drilling Units            1            0            0         4.61            5        10.93           11         0.65            1
K..........................................  Small Passenger...............            5         1.65            8         3.05           15         0.01            0         0.53            3
L..........................................  Offshore Supply Vessels.......           11            0            0         4.12           45         0.16            2         0.95           10
M..........................................  Towing Vessels................           22         0.06            1         1.04           23            0            0         0.04            1
R..........................................  Nautical Schools..............            0         0.07            0         4.83            0         2.72            0         0.76            0
R..........................................  Sailing Schools...............            0            0            0         2.40            0         0.10            0         0.70            0
T..........................................  Small Passenger...............           35         0.24            8         1.77           62            0            0         0.20            7
U..........................................  Oceanographic Research........            1         0.04            0         3.51            4         0.72            1         0.49            0
Other Vessels..............................  Other Vessels.................            2         0.15            0         1.56            3         0.07            0         0.10            0
                                                                            --------------------------------------------------------------------------------------------------------------------
    Total..................................  ..............................          113            6           25           37          222           18           33            7           31
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Subchapters K and T Vessels
    This rule also affects all U.S.-flagged vessel operators regulated
under subchapters K and T, as these vessel operators are required to
maintain a Coast Guard-approved first-aid kit onboard their vessels, in
addition to any first-aid kits carried in the survival craft. The
owners and operators of these small passenger vessels will no longer be
required to maintain Coast Guard-approved first-aid kits aboard the
vessels themselves. Using MISLE data, we estimate there to be 5,982
existing small passenger vessels, with 40 new vessels being built on an
annual basis. This number includes all small passenger vessels defined
in subchapters K and T, found in Sec. Sec.  121.710 and 184.710,
respectively, regardless of what type of survival craft they have on
board.
Equipment Type for Each Survival Craft
    The type of equipment each survival craft is required to carry
varies depending on the intended use of the survival craft. Generally,
survival craft intended for longer (international) voyages require more
equipment than those intended to be used closer to shore. Lifeboats on
inspected vessels generally must carry an equipment pack for an
international voyage.\8\ Table 6 contains the equipment required by
pack and type of survival craft.
---------------------------------------------------------------------------

    \8\ With the exception of lifeboats on sailing school vessels,
which must carry the equipment required in Sec. Sec.  169.527 and
169.529.

---------------------------------------------------------------------------

[GRAPHIC] [TIFF OMITTED] TR14NO22.000

Equipment Pack Types for Commercial Fishing Vessels
    Commercial fishing vessels must be equipped with either a Coastal
Service pack, a SOLAS A pack, or a SOLAS B pack, depending on vessel
size, distance traveled, whether the ocean route is designated as a
cold-water route or warm-water route, and the number of persons on
board. Table 7 provides a brief description of the packs that can be
carried by lifeboats and liferafts.\9\
---------------------------------------------------------------------------

    \9\ Readers can find more information on inflatable liferafts
for domestic service at https://ecfr.io/Title-46/sp<IP_ADDRESS>_1051.

    Table 7--Description of Packs carried by Lifeboats and Liferafts
------------------------------------------------------------------------
         Type of pack                           Contents
------------------------------------------------------------------------
Coastal Service pack.........  A Coastal pack will contain a Sea Anchor
                                (Automatically Deployed), Floating/Heavy
                                Line (Length 100 feet), Rain Water
                                Collector, Floatable Knife, Waterproof
                                Equipment Bag, Raft Use Instructions,
                                Individual Thermal Protective Aids (2
                                nos.), Floatable Paddles (1 pair),
                                Manual Inflation/Bilge Pump, Repair
                                Clamps (6 nos.), Adhesive and Patch
                                Repair Kit.
SOLAS B pack.................  In addition to the items listed in the
                                Coastal pack, a SOLAS B pack will
                                contain: Waterproof Flashlight, a Spare
                                Flashlight Bulb, Spare Flashlight ``D''
                                Cell Batteries (3 nos.), Sponges (2
                                nos.), Bailer, SOLAS Handheld Flares (3
                                nos.), SOLAS Rocket Parachute Flares (2
                                nos.) Buoyant Smoke Signal (1 no.),
                                Seasick Bags (1 per person), Water
                                Storage Bag, Thermal Protective Aid,
                                Heliograph Mirror (for signaling), First-
                                Aid Kit, Signaling Whistle, Anti-
                                Seasickness Pills (6 Per Person), Spare
                                Sea Anchor.
SOLAS A pack.................  In addition to the items listed in the
                                Coastal pack and the items listed in
                                SOLAS B, a SOLAS A pack will include: a
                                Graduated Drinking Cup, Drinking Water
                                (6 to 20 Person Capacity), Food Ration
                                (10kj per Person), Can Opener, Fishing
                                Kit, SOLAS Handheld Flares (Total 6
                                nos.) and a SOLAS Rocket Parachute Flare
                                (Total 4 nos.).
------------------------------------------------------------------------

Equipment Pack Types for Survival Craft
    We used vessel route types from MISLE to estimate the percentage of
vessels with a SOLAS A pack compared to a SOLAS B pack. We presume that
all vessels with ``Ocean'' listed as a route type carry survival craft
with SOLAS A packs. We estimate the remaining route types, not listed
as ``Ocean,'' will have SOLAS B packs. Using commercial fishing vessel
data from MISLE and knowledge from subject matter experts from the
Coast Guard's Lifesaving & Fire Safety Division (CG-ENG-4), who
specialize in survival craft data, we estimate that 50 percent of non-
oceangoing fishing vessels will have Coastal Service packs and 50
percent of non-oceangoing fishing vessels will have SOLAS B packs.
    We created a distribution of SOLAS A, SOLAS B, and Coastal Service
packs by pulling all U.S.-flagged vessels by the inspection subchapter
and then pulling these vessels by route type from the MISLE database.
We excluded any vessels that did not have survival craft or had an
unknown field for survival craft in the MISLE database. The route-type
designation included ``Ocean'' for oceangoing vessels in MISLE, which
we designated as SOLAS A vessels.\10\ We designated the remainder as
SOLAS B vessels, except for commercial fishing vessels.\11\ We then
calculated the number of SOLAS A packs by dividing the population of
our vessels (by subchapter) by the sum of vessels that had ``Ocean''
routes and dividing that sum by the sum of vessels in that given
subchapter. To calculate the percentage of SOLAS B packs, we simply
subtracted the number of SOLAS A packs from 100 percent. This data pull
provided the total number of inflatable liferafts and lifeboats,
respectively, and the percentage of each survival craft pack type by
subchapter, which is presented in table 8.
---------------------------------------------------------------------------

    \10\ The ``Ocean'' designation in MISLE specifically refers to
vessels with SOLAS certificates that designate them as SOLAS A
vessels. The MISLE data being pulled is from 2008-2020.
    \11\ We broke out the Coastal routes and short international
routes by vessel, because Commercial Fishing Vessels are the only
type of vessels in our affected population that will carry Coastal
Service packs instead of only having SOLAS B packs for short
international shipping routes.

              Table 8--Percentage of Equipment Pack Types for Lifeboats and Liferafts by Subchapter
----------------------------------------------------------------------------------------------------------------
                                                                                Short
                                   Total number      Number of        Coastal     international/  International/
         Type of vessel           of vessels (a)    oceangoing     service pack     SOLAS B (d)     SOLAS A (e)
                                                    vessels (b)    (c) (percent)     (percent)       (percent)
----------------------------------------------------------------------------------------------------------------
Commercial Fishing (Subchapter             6,022            3387              22              22              56
 C).............................
Uninspected Passenger                        173             105  ..............              39              61
 (Subchapter C).................
Tank (Subchapter D).............             323             313  ..............               3              97
Passenger (Subchapter H)........             191              67  ..............              65              35
Cargo and Miscellaneous                     1037             974  ..............               6              94
 (Subchapter I).................
Mobile Offshore Drilling Units                57              55  ..............               4              96
 (Subchapter I-A)...............
Small Passenger (Subchapter K)..             311               6  ..............              98               2
Offshore Supply (Subchapter L)..             338             335  ..............               1              99
Towing (Subchapter M)...........            1434            1123  ..............              22              78
Nautical Schools (Subchapter R).              29              28  ..............               3              97
Sailing Schools (Subchapter R)..              10               2  ..............              80              20
Small Passenger (Subchapter T)..            4231             872  ..............              79              21
Oceanographic Research                        74              42  ..............              43              57
 (Subchapter U).................
Other...........................             517             300  ..............              42              58
----------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

    We then estimated the number of liferafts and lifeboats by
equipment pack type for existing and new vessels by looking at the
total number of packs carried by lifeboats and liferafts. Table 9
presents the number of SOLAS A, SOLAS B, and Coastal Service packs by
liferaft and lifeboat for each subchapter of vessels.
    We calculated the total number of inflatable liferafts with Coastal
Service Packs (column (a) in table 9) by multiplying the percentage of
Coastal Service Packs in liferafts and lifeboats (column (c) in table
8) by the total number of inflatable liferafts by subchapter (column
(c) in table 4). We calculated column (b) in table 9, ``Short
International/SOLAS B packs for inflatable liferafts,'' by multiplying
column (d) in table 8, which is the percentage of Short International/
SOLAS B packs by vessel subchapter, by column (c) in table 4, which is
the total number of inflatable liferafts by subchapter. We calculated
column (c) in table 9, ``International/SOLAS A packs for liferafts,''
by multiplying column (e) in table 8, which is the percentage of
International/SOLAS A packs by vessel subchapter, by column (c) in
table 4, which is the total number of inflatable liferafts by
subchapter. We calculated column (e) in table 9, ``Short International/
SOLAS B packs for lifeboats,'' by taking the sum of multiplying columns
(c) and (d), the percentages of Coastal packs and Short International/
SOLAS B packs in table 8 by column (d) in table 4, which is the total
number of lifeboats by subchapter. Finally, we calculated column (f) in
table 9, ``International/SOLAS A packs for lifeboats'' by multiplying
column (e) from table 8, which is the percentage of International
Packs/SOLAS A, by column (d) in table 4, which is the total number of
lifeboats by subchapter.
BILLING CODE 9110-04-P

[GRAPHIC] [TIFF OMITTED] TR14NO22.001

    Table 10 presents the total number of new packs needed each year
for new survival craft. We calculated this table by taking the number
of new lifeboats and liferafts presented in table 5 and multiplying
that figure by the

distribution in table 8 to obtain the number of new packs needed for
the new liferafts and lifeboats on vessels each year.
BILLING CODE 9110-04-C

                       Table 10--Lifeboats and Liferafts by Equipment Pack Type Needed on an Annual Basis Broken Out by Subchapter
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Inflatable liferafts                                          Lifeboats
                                         ---------------------------------------------------------------------------------------------------------------
             Type of vessel                                    Short                                           Short
                                              Coastal     international/  International/       Total      international/  International/       Total
                                           service pack       SOLAS B         SOLAS A                         SOLAS B         SOLAS A
--------------------------------------------------------------------------------------------------------------------------------------------------------
Commercial Fishing (Subchapter C).......               4               5              11              20               0               0               0
Uninspected Passenger (Subchapter C)....  ..............               0               1               1               0               0               0
Tank (Subchapter D).....................  ..............               0              11              11               0               8               8
Passenger (Subchapter H)................  ..............               3               2               5               1               0               1
Cargo and Miscellaneous (Subchapter I)..  ..............               2              26              28               1               9              10
Mobile Offshore Drilling Units            ..............               0               5               5               0              11              11
 (Subchapter I-A).......................
Small Passenger (Subchapter K)..........  ..............              15               0              15               0               0               0
Offshore Supply (Subchapter L)..........  ..............               0              45              45               0               2               2
Towing (Subchapter M)...................  ..............               5              18              23               0               0               0
Nautical Schools (Subchapter R).........  ..............               0               0               0               0               0               0
Sailing Schools (Subchapter R)..........  ..............               0               0               0               0               0               0
Small Passenger (Subchapter T)..........  ..............              49              13              62               0               0               0
Oceanographic Research (Subchapter U)...  ..............               2               2               4               0               1               1
Other Vessels...........................  ..............               1               2               3               0               0               0
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................               4              82             136             222               2              31              33
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Values may not sum due to rounding.

Benefits
    In addition to the nonquantified benefits discussed in table 2,
this rule will generate a cost savings as follow:
Cost Savings
    This rule will generate a cost savings to: (1) vessel owners and
operators from having the option to purchase less expensive survival
craft equipment; (2) equipment manufacturers from reducing reporting,
recordkeeping, and production requirements of survival craft equipment;
and (3) the Federal Government from reducing recordkeeping
requirements. The details and calculations of the cost savings are
discussed later in this final rule.
Wages
    This rule will reduce the burden of review that is required by both
industry and the Federal Government. This review includes preparing COA
applications, renewals, and product instructions by certain
manufacturers. We presume clerical employees will be responsible for
all the manufacturer's recordkeeping activities, and production
employees will be responsible for marking equipment and packing
instructions. Federal Government employees who possess the technical
knowledge to review submissions to ensure safety standards will be
senior engineers at the GS-14 grade. These employees will be
responsible for the review of all the submitted information.
    We calculate the costs for each activity by estimating the labor
hours required in each labor category and then multiplying those
burdens by the wage rate for each labor category. For this analysis, we
calculated private sector wages using 2020 wage data from the U.S.
Bureau of Labor Statistics (BLS) Occupational Employment Statistics
(OES) for the miscellaneous manufacturing sector (North American
Industry Classification System (NAICS) 339000).\12\ We added a load
factor to the industry wages using December 2020 wage and total
compensation data from the BLS Employer Costs for Employee Compensation
(ECEC) survey, which accounts for employee benefits. This load factor
represents the total benefits as a percentage of total salary.\13\
Table 11 summarizes the loaded wage rates for industry used in this RA.
---------------------------------------------------------------------------

    \12\ https://www.bls.gov/oes/2020/may/naics3_339000.htm.
    \13\ A loaded labor rate is what a company pays per hour to
employ a person beyond the hourly wage. Instead, the loaded labor
rate includes the cost of benefits (health insurance, vacation,
etc.). We calculate the load factor for wages by dividing total
compensation by wages and salaries. For this analysis, we used BLS'
Employer Cost for Employee Compensation/Manufacturing Occupations,
Private Industry report (Series IDs, CMU2013000000000D and
CMU2023000000000D for all workers using the multi-screen data
search). Using 2020 Quarter 4 Manufacturing data, we divided the
total compensation amount of $40.02 by the wage and salary amount of
$26.56 to get the load factor of 1.51 ($40.02 divided by $26.56).
This data is found in table 4 of the Employer Costs for Employee
Compensation December 2020 News Release available at Employer Costs
for Employee Compensation Archived News Releases: U.S. Bureau of
Labor Statistics (bls.gov).

                                                 Table 11--Derivation of 2020 Loaded Industry Wage Rates
                                                             [Rounded to the nearest dollar]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                2020 hourly wage     Load factor      Loaded hourly
                                                                                ------------------------------------       wage
              Personnel  category                                  Data source(s)                                                      -----------------
                                                                                (a)               (b)         (c) = (a) x (b)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Technical......................................  Wage Rate: Mean hourly wage for Industrial                   $44.10              1.51               $67
                                                  Engineers, including Health and Safety:
                                                  Occupation code (17-2110) under the
                                                  miscellaneous manufacturing sector (NAICS
                                                  339000) from the BLS OES. Link: https://www.bls.gov/oes/2020/may/naics3_339000.htm#17-0000 0000.

                                                 Loading Factor: Calculated from December 2020 BLS
                                                  ECEC non-seasonally adjusted data for wage and
                                                  salaries (CMU2013000000000D) and total
                                                  compensation (CMU2023000000000D) for private
                                                  industry workers in the miscellaneous
                                                  manufacturing sector.
Clerical.......................................  Wage Rate: Mean hourly wage for Information and              $19.87              1.51               $30
                                                  Record Clerks: Occupation code (43-4000) under
                                                  the miscellaneous manufacturing sector (NAICS
                                                  339000) from the BLS OES. Link: https://www.bls.gov/oes/2020/may/naics3_339000.htm#43-4000 4000.
                                                 Loading Factor: Calculated from December 2020 BLS
                                                  ECEC non-seasonally adjusted data for wage and
                                                  salaries (CMU2013000000000D) and total
                                                  compensation (CMU2023000000000D) for private
                                                  industry workers in the manufacturing sector.
Production.....................................  Wage Rate: Mean hourly wage for Assemblers:                  $17.22              1.51               $26
                                                  Occupation code (51-2000) in the miscellaneous
                                                  manufacturing sector (NAICS 339000) from the BLS
                                                  OES. Link: https://www.bls.gov/oes/2020/may/naics3_339000.htm#51-2000.
                                                 Loading Factor: Calculated from December 2020 BLS
                                                  ECEC non-seasonally adjusted data for wage and
                                                  salaries (CMU2013000000000D) and total
                                                  compensation (CMU2023000000000D) for private
                                                  industry workers in the manufacturing sector.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Values may not sum due to rounding.

    For Federal Government employees, The Office of Personnel
Management (OPM) lists the hourly pay for Federal employees according
to the Washington, DC area General Schedule (GS) pay tables.\14\ OPM
records the hourly pay of GS-14, step 5 (the midpoint of the pay band)
as $65.88. We calculate the share of total compensation of Federal
employees to account for a government employee's non-wage benefits. The
Congressional Budget Office (2017) reports total compensation to
Federal employees as $64.80 per hour and wages as $38.30.\15\ We
determine the load factor to be approximately 1.69.\16\ We multiplied
$65.88 by 1.69 to obtain a loaded hourly wage rate of approximately
$111.34 for a GS-14 senior engineer.
---------------------------------------------------------------------------

    \14\ https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/20Tables/html/DCB_h.aspx.
    \15\ Congressional Budget Office (2017), ``Comparing the
Compensation of Federal and Private-Sector Employees, 2011 to
2015,'' https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/52637-federalprivatepay.pdf.
    \16\ $64.80 divided by 38.30.
---------------------------------------------------------------------------

Cost Savings to Equipment Manufacturers
    We estimate that manufacturers of Coast Guard-approved equipment
will have a cost savings associated with no longer having to complete
applications to obtain and maintain Coast Guard approval. In addition,
this rule will remove recordkeeping and reporting requirements, and
reduce testing requirements for some pieces of survival equipment.
Number of Survival Craft Products
    This rule modifies the approval requirements for nine categories of
survival craft equipment. In total, there are 28 approvals for these 9
categories of survival craft equipment. These are the specific items
that vessel owners and operators purchase to comply with the vessel
carriage regulations found in 46 CFR chapter I, subchapters C, T, K,
and W.\17\ These items are required to be stowed on board survival
craft.
---------------------------------------------------------------------------

    \17\ Refer to the appendix titled ``Appendix C: Carriage
Requirements for all the Survival Craft Equipment'' in the docket
folder for more information on carriage requirements for all vessels
affected by this final rule.
---------------------------------------------------------------------------

    To comply with the lifesaving equipment regulations in 46 CFR
chapter I, subchapter Q, manufacturers submit an application to the
Coast Guard for review and approval. Once approved, the manufacturer of
each piece of equipment must mark it (or stamp it) with its approval
number (see table 12).
    There are two types of survival craft equipment: (1) items that are
durable and need not be replaced or serviced frequently, such as bilge
pumps, compasses, fishing kits,\18\ jackknives, signaling mirrors,
hatchets, and sea anchors; and (2) items that are not durable, expire,
and must be replaced, such as first-aid kits and emergency drinking
water. We used the annual total number of pieces of survival craft
equipment needed to stock new survival craft in order to forecast the
number of new pieces of equipment manufactured and stamped on an annual
basis. We estimate that, in the long term, the supply of new survival
equipment will equal the demand of new survival craft equipment.
---------------------------------------------------------------------------

    \18\ There is currently one Coast Guard-approved fishing kit on
CGMIX. The only non-durable aspect of the fishing kit is the bait,
which is made of a synthetic resin known as plastisol. If stored
properly, plastisol has an indefinite shelf life.
---------------------------------------------------------------------------

    The Coast Guard does not have substantive data on how long these
durable goods last, and we estimate that these goods will last as long
as the survival craft themselves.
    We discuss the renewal rate of non-durable goods, first-aid kits,
and water later in this analysis.\19\ Table 12 lists the estimated
number of pieces of survival craft equipment manufactured on an annual
basis.
---------------------------------------------------------------------------

    \19\ Refer to the sections titled First-Aid Kits, First-Aid Kits
for Liferafts and IBA, and Emergency Water further in the regulatory
analysis.

 Table 12--Estimated Number of Pieces of Equipment Manufactured Annually
------------------------------------------------------------------------
                                                          Annual  number
                Equipment                    Approval      of  pieces of
                                              series         equipment
------------------------------------------------------------------------
Compass.................................         160.014              87
First-aid kit for Lifeboats.............         160.041             188
First-aid kit for Liferafts.............         160.054             285
Fishing kit.............................         160.061              38
Hatchet.................................         160.013              92
Jackknife...............................         160.043              46
Mirror, Signaling.......................         160.020             338
                                         -------------------------------
    Total...............................  ..............           1,074
------------------------------------------------------------------------

Equipment Approval and Markings
    In the current regulations, manufacturers seeking Coast Guard
approval must submit a COA application with information such as
technical plans, drawings, specifications, instructional materials, and
test reports. In addition to the initial application, manufacturers of
Coast Guard-approved equipment must also submit application renewals
every 5 years to maintain their approval status. Table 3 presents the
estimated number of new COA applications for each equipment type, as
the annual average number of new products each year.
    Table 13 presents the estimated number of application renewals for
each equipment type. Since the Coast Guard estimates that 1 of every 5
applications will be renewed on an annual basis, the number of renewal
applications is equal to 20 percent of the total number of products.
Once a product has been approved, the manufacturer must stamp each
individual piece of survival craft equipment with the Coast Guard
approval number and other information.

                                     Table 13--Total Number of New Renewals
----------------------------------------------------------------------------------------------------------------
                                                                                Annual
                                                   Approval          Total      percentage  of    Total renewal
                   Equipment                        series         products        COAs for       applications
                                                                                renewals         annually
                                                                           (a)             (b)   (c) = (a) x (b)
----------------------------------------------------------------------------------------------------------------
Bilge pump....................................         160.044               3              20               0.6
Compass.......................................         160.014               3              20               0.6
First-aid kit for Lifeboats *.................         160.041               5              20                 1
First-aid kit for Liferafts...................         160.054               5              20                 1
Fishing kit...................................         160.061               1              20               0.2
Hatchet.......................................         160.013               1              20               0.2
Jackknife.....................................         160.043               1              20               0.2
Mirror, Signaling.............................         160.020               2              20               0.4
Sea anchor....................................         160.019               1              20               0.2
Water **......................................         160.026               6              20               1.2
                                               -----------------------------------------------------------------
    Total.....................................  ..............              28              20                 6
----------------------------------------------------------------------------------------------------------------
Note: Values may not sum due to rounding.
* This includes the first-aid kits described in the subchapters K and T section of this preamble, which are
  covered under the same approval subpart in the CFR.
** For emergency drinking water, this only includes implementation in the first 5 years of the analysis period.
We present the number of affected products in Years 6 through 10 of the analysis period later in this RA.

    We estimate that it will take the technical staff 2 hours to
prepare a new application, and the clerical staff will spend 0.17 hours
(10 minutes) \20\ per application on recordkeeping, for a total cost of
$139 per new application [(2 technical hours x $67) + (0.17 clerical
hours x $30) = $139]. For renewal applications, we estimate a burden of
0.5 technical hours and 0.17 clerical hours, for a total cost of $39
[(0.5 technical hours x $67) + (0.17 clerical hours x $30) = $39].
Under this rule, the Coast Guard no longer requires approval
applications for any new survival craft equipment. As shown in table
14, we estimate this will result in a cost saving to industry of
approximately $117 per year for new applications, and approximately
$219 per year for renewal applications. This results in a total annual
cost savings of about $336.
---------------------------------------------------------------------------

    \20\ Based on information from the subchapter Q ICR.

              Table 14--Annual Cost Savings of Industry for No Longer Having to Submit New and Renewal Certificate of Approval Applications
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            New applications                Renewal applications
                                                       Approval    --------------------------------------------------------------------    Total cost
                     Equipment                          series      Total  number of    Total cost    Total  number of    Total cost         savings
                                                                      applications *      savings      applications **      savings
                                                                                (a)  (b) = (a) x [-               (c)  (d) = (c) x [-   (e) = (b) + (d)
                                                                                $139]                              $39]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bilge pump........................................         160.044              0.09            -$13              0.60            -$23              -$36
Compass...........................................         160.014              0.09             -13              0.60             -23               -36
First-aid kit for Lifeboats.......................         160.041              0.15             -21              1.00             -39               -60
First-aid kit for Liferafts.......................         160.054              0.15             -21                 1             -39               -60
Fishing kit.......................................         160.061              0.03              -4              0.20              -8               -12
Hatchet...........................................         160.013              0.03              -4              0.20              -8               -12
Jackknife.........................................         160.043              0.03              -4              0.20              -8               -12
Mirror, Signaling.................................         160.020              0.06              -8               0.4             -16               -24
Sea anchor........................................         160.019              0.03              -4              0.20              -8               -12
Water.............................................         160.026              0.18             -25              1.20             -47               -72
                                                   -----------------------------------------------------------------------------------------------------
    Total.........................................  ..............  ................            -117  ................            -219              -336
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Values may not sum due to rounding.
* Refer to column (c) in table 3.
** Refer to column (c) in table 13.

    The Coast Guard is removing requirements that equipment must be
marked with a Coast Guard approval number. With the exception of
compasses and hatchets, equipment needs to be marked only to indicate
that it meets standards set in ISO 18813. Compasses will no longer need
to be marked with their Coast Guard approval number, but will still
need to be marked to indicate they meet ISO 25862, as is currently
required by the Coast Guard approval guidelines for magnetic compasses
in lifeboats and rescue boats. Hatchets will not need to be marked at
all, as they do not have to meet any consensus standard and because
this rule removes the marking required by Sec.  160.013-5.
    The Coast Guard assumes the burden to mark the equipment is the
same whether it is marked with a Coast Guard approval number or whether
it is marked indicating that it meets the ISO standard; therefore, this
change will only result in a cost savings to the manufacturers of
hatchets. The Coast Guard estimates that it takes industry 0.06 hours
of production labor time \21\ to mark each individual piece of
equipment at a cost of $1.56 (0.06 hours x $26 = $1.56) per piece of
equipment. We estimate that 92 hatchets will no longer need to be
marked each year (see table 12), for a total cost savings of
approximately $144 ($1.56 x 92).\22\
---------------------------------------------------------------------------

    \21\ This is based on information from the subchapter Q ICR.
    \22\ This value is incorporated in column (a) of table 19.
---------------------------------------------------------------------------

Instructions
    The Coast Guard currently requires that equipment manufacturers
provide instruction material with certain types of equipment to ensure
that crew members have access to information on the proper use of the
equipment. We currently require instructions for five of the nine types
of equipment subject to this rulemaking: compasses, first-aid kits,
mirrors, fishing kits, and jackknives. ISO 18813 requires instructions
for three types of equipment: first-aid kits, mirrors, and fishing
kits. ISO 18813 does not state that instructions need to be provided
for compasses and jackknives; therefore, the manufacturers of compasses
and jackknives will no longer have to develop and maintain instructions
for their products under this rule.
    Based on information in the current subchapter Q ICR (OMB Control
Number 1625-0035), we estimate that it takes about 8 hours of time to
prepare a set of instructional materials for new equipment, for a cost
of about $536 (8 hours x $67/hour).
    Table 15 presents the total annual industry cost savings, $64, for
no longer having to develop new instructions for some types of new
survival craft equipment. The total cost in columns (b) and (d), $536,
is the loaded wage of a safety engineer and inspector, $67, multiplied
by the estimated burden of work, 8 hours, for preparing a set of new
instructions. This table presents the baseline scenario burden, the
proposed post-regulatory scenario burden, and the difference between
the two as cost savings.

                            Table 15--Annual Cost Savings of Modifying New Instruction Requirements for Applicable Equipment
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            Baseline scenario             Post-regulatory scenario
                                                       Approval    --------------------------------------------------------------------    Total cost
                     Equipment                          series         Total new                         Total new                           savings
                                                                     instructions      Total cost      instructions      Total cost
                                                                               (a)  (b) = (a) x $536             (c)  (d) = (c) x $536     (e) = (d)-(b)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Compass...........................................         160.014            0.09               $48               0                $0              -$48
First-aid kit for Lifeboats.......................         160.041            0.15                80            0.15                80                 0
First-aid kit for Liferafts.......................         160.054            0.15                80            0.15                80                 0
Fishing kit.......................................         160.061            0.03                16            0.03                16                 0
Jackknife.........................................         160.043            0.03                16               0                 0               -16
Mirror, Signaling.................................         160.020            0.06                32            0.06                32                 0
                                                   -----------------------------------------------------------------------------------------------------
    Total.........................................  ..............            0.51               272            0.39               208               -64
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Laboratory Testing and Recordkeeping
    As current regulations stand, the Coast Guard requires product
testing and recordkeeping for some lifesaving equipment to ensure the
equipment meets minimum performance requirements. Table 16 presents a
comparison of the current Coast Guard testing requirements and the
testing requirements stated in ISO 18813 and ISO 25862 (for compasses).
This table also contains a qualitative description of the change in
costs associated with modifying the current testing requirements. We
were unable to obtain any cost data from the Coast Guard-approved labs
that conduct the testing of this equipment, and we received no comments
to the NPRM on this.\23\
---------------------------------------------------------------------------

    \23\ We asked four Coast Guard-approved laboratories for cost
estimates for the testing requirements, but the labs were unable to
provide any cost information.

                             Table 16--Previous and New Product Testing Requirements
----------------------------------------------------------------------------------------------------------------
                                        Previous testing           New testing
              Product                     requirements            requirements               Cost impact
----------------------------------------------------------------------------------------------------------------
Compasses..........................   All testing     All testing    No cost change, as the
                                      requirements from       requirements for        requirements of ISO 613
                                      section 4 of ISO 613    class B Compasses as    and ISO 25862 are not
                                      \a\.                    stated in ISO 25862.    substantively different.
                                      Dry Heat \a\.   Dry Heat.....
                                      Low             Damp Heat....
                                      Temperature \a\.        Low
                                      Vibration \a\   Temperature.
                                      Solar           Vibration....
                                      Radiation \a\.          Solar
                                      Corrosion \a\   Radiation.
                                                              Corrosion....
Bilge Pump.........................   Capacity        Capacity       None. Testing requirements
                                      Testing \b\.            Testing.                are the same.
                                      Head Pressure   Head Pressure
                                      Testing \b\.            Testing.
                                      Operating       Operating
                                      Lever Testing \b\.      Lever Testing.
Jackknife..........................   Hardness Test   Cutting Tests  Unquantified cost savings.
                                      \c\.                                            The Coast Guard is unable
                                      Bending and                             to assess the change in
                                      Drop Tests \c\.                                 burden; there is no
                                      Cutting Tests                           substantive data.
                                      \c\.
First-Aid for Lifeboats............   Accelerated     None.........  Unquantified cost savings.
                                      weathering \d\.                                 There is no change in
                                      Salt spray                              testing requirements;
                                      \d\.                                            therefore, there is no
                                      Temperature                             change in burden.
                                      change \d\.
                                      Container
                                      watertightness \d\.
                                      Carton
                                      watertightness \d\.
First-Aid for Liferafts............   Accelerated     None.........  Unquantified cost savings.
                                      weathering \e\.                                 There is no change in
                                      Salt Spray                              testing requirements;
                                      \e\.                                            therefore, there is no
                                                                                change in burden.
Mirrors............................   Reflection      Reflection     Unknown change in cost. The
                                      Test \f\.               Test.                   Coast Guard is unable to
                                      Flatness        Flatness Test   assess the change in
                                      Tests \f\.              Dropping Test   burden as there is no
                                      Dropping Test   Oil-            substantive data.
                                      \f\.                    Resistance Test.
                                      Salt Spray      Lanyard
                                      \f\.                    Strength Test.

                                      Watertightness.
Emergency Water....................   Chemical and    Water quality  None. Testing requirements
                                      biological analysis.    must be verified by     are the same, as under the
                                      Temperature     the local               ISO standard the water
                                      Storage.                municipality or         must satisfy international
                                      Leakage......   independent lab.        chemical and
                                      Water           Low and High    microbiological
                                      Immersion Testing.      Temperature Storage.    requirements. Concerning
                                      Durability...   Leakage......   the water quality testing,
                                      Corrosion....   Water           the Coast Guard was unable
                                      Drop.........   Immersion Testing.      to obtain any cost data
                                                              Durability...   from the laboratories.
                                                              Corrosion....
                                                              Drop.........
----------------------------------------------------------------------------------------------------------------
Sources:
\a\ ``United States Coast Guard Approval Guideline for Magnetic Compasses in Lifeboats/Rescue Boats,'' USCG
  Approval Series 160.014, December 2005.
\b\ Sec.   160.044-4
\c\ Sec.   160.043-5
\d\ Sec.   160.041-5
\e\ Sec.   160.054-5
\f\ Documentation provided by subject matter experts in CG-ENG-4.

    Based on the information from the current subchapter Q ICR, we
estimate that recordkeeping takes 2 hours of clerical time per year and
costs $60 (2 hours x $30 clerical staff loaded hourly wage rate). The
Coast Guard is removing the requirements for testing records for seven
types of equipment listed in this final rule, as these manufacturers no
longer need these records to document that their products meet the
requirements of the ISO 18813. Table 17 presents the total cost savings
of about $1,500 to industry from removing requirements to keep records
of laboratory testing. The $60 figure used in calculating total cost in
columns (b) and (d) represents the loaded hourly

wage of a record clerk ($30) multiplied by the estimated burden of work
for fulfilling recordkeeping requirements (2 hours). This table
presents the baseline scenario burden and the post-regulatory scenario
burden and then presents the difference of the two burdens as cost
savings.

                                  Table 17--Annual Cost Savings to Manufacturers for Testing Recordkeeping Requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            Baseline scenario             Post-regulatory scenario
                                                       Approval    --------------------------------------------------------------------    Total cost
                     Equipment                          subpart          Total                             Total                             savings
                                                                       products        Total cost        products        Total cost
                                                                               (a)   (b) = (a) x $60             (c)   (d) = (c) x $60   (e) = (d) - (b)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bilge pump........................................         160.044               3              $180               0                $0             -$180
Compass...........................................         160.014               3               180               0                 0              -180
First-aid kit for Lifeboats.......................         160.041               5               300               0                 0              -300
First-aid kit for Liferafts.......................         160.054               5               300               0                 0              -300
Jackknife.........................................         160.043               1                60               0                 0               -60
Mirror, Signaling.................................         160.020               2               120               0                 0              -120
Water.............................................         160.026               6               360               0                 0              -360
                                                   -----------------------------------------------------------------------------------------------------
    Total.........................................  ..............              25             1,500               0                 0            -1,500
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Laboratory Inspections
    The Coast Guard currently requires inspectors to examine the
manufacturing process in order to ensure that quality control is
maintained. This rule removes these requirements; however, the Coast
Guard is unable to determine if this removal will generate any cost
savings to industry. Hence, the Coast Guard is not quantifying it as a
cost savings. Manufacturers are likely to still have their production
line inspected to ensure quality as part of best industry practices.
Moreover, manufacturers may continue third-party testing to maintain
certifications, such as the ISO 9001 standard, or to meet other
regulatory obligations. At the time of this final rule, the Coast Guard
does not have enough information to quantify any potential changes in
cost resulting from the changes in inspection requirements.
    Additionally, the Coast Guard requires inspecting entities to issue
annual reports to enable a comparison between the production line and
the prototype tested by the Coast Guard.\24\ We were able to estimate a
cost savings that resulted from the removal of this reporting
requirement using information from the subchapter Q ICR, which
estimated that this recordkeeping takes 24 hours of clerical time per
year on average and costs $720 (24 hours x $30 clerical wage rate). The
Coast Guard is removing this reporting requirement for all types of
survival craft equipment. As shown in table 18, we estimate a total
annual cost savings of approximately $17,280. This table presents the
baseline scenario burden, the post-regulatory scenario burden, and the
difference between the two as cost savings.
---------------------------------------------------------------------------

    \24\ While the Coast Guard currently requires testing for
jackknives, it does not require laboratory inspections. Therefore,
there are no cost savings to jackknife manufacturers from this
change.

                                             Table 18--Annual Cost Savings for Laboratory Inspection Records
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            Baseline scenario             Post-regulatory scenario
                                                       Approval    --------------------------------------------------------------------  Total change in
                     Equipment                          series           Total                             Total                              cost
                                                                       products        Total cost        products        Total cost
                                                                               (a)  (b) = (a) x $720             (c)  (d) = (c) x $720   (e) = (d) - (b)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bilge pump........................................         160.044               3            $2,160               0                $0           -$2,160
Compass...........................................         160.014               3             2,160               0                 0            -2,160
First-aid kit for Lifeboats.......................         160.041               5             3,600               0                 0            -3,600
First-aid kit for Liferafts.......................         160.054               5             3,600               0                 0            -3,600
Mirror, Signaling.................................         160.020               2             1,440               0                 0            -1,440
Water.............................................         160.026               6             4,320               0                 0            -4,320
                                                   -----------------------------------------------------------------------------------------------------
    Total.........................................  ..............              24            17,280               0                 0           -17,280
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Total Cost Savings to Manufacturers
    Table 19 presents the annual total cost savings to equipment
manufacturers. We estimate that manufacturers of Coast Guard-approved
bilge pumps, lifeboats, compasses, first-aid kits, fishing kits,
hatchets, jackknives, signaling mirrors, sea anchors, and emergency
water will save approximately $19,324 per year.

                                             Table 19--Total Annual Cost Savings to Equipment Manufacturers
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          Application
                       Equipment                           Approval       and marking     Instruction       Product       Laboratory       Total cost
                                                            series       requirements    requirements       testing       inspections        savings
                                                                                (a)             (b)             (c)             (d)   (e) = (a) + (b)
                                                                                + (c) + (d)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bilge pump............................................         160.044            -$36              $0           -$180         -$2,160           -$2,376
Compass...............................................         160.014             -36             -48            -180          -2,160            -2,424

First-aid kit for Lifeboats...........................         160.041             -60              -0            -300          -3,600            -3,960
First-aid kit for Liferafts...........................         160.054             -60              -0            -300          -3,600            -3,960
Fishing kit...........................................         160.061             -12              -0               0               0               -12
Hatchet...............................................         160.013            -156               0               0               0              -156
Jackknife.............................................         160.043             -12             -16             -60               0               -88
Mirror, Signaling.....................................         160.020             -24              -0            -120          -1,440            -1,584
Sea anchor............................................         160.019             -12               0               0               0               -12
Water.................................................         160.026             -72               0            -360          -4,320            -4,752
                                                       -------------------------------------------------------------------------------------------------
    Total.............................................  ..............            -480             -64          -1,500         -17,280           -19,324
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

Cost Savings to Vessel Owners or Operators
    After gathering price data from a variety of sources, we estimate
that removing approval requirements will allow owners and operators of
vessels to purchase less expensive equipment.\25\ While there are
several companies selling Coast Guard-approved equipment, online
information generally does not specify whether the equipment meets ISO
18813 or similar standards. As a result, we had difficulty finding
price data for survival craft equipment products clearly stating that
they met ISO 18813 standards. However, we were able to identify prices
for two products--emergency provisions and emergency water--that the
manufacturer or advertiser explicitly stated met the requirements of
the ISO 18813 standard.
---------------------------------------------------------------------------

    \25\ We looked at online retailers of survival craft equipment
to assess price data. A search of online retailers determined that
equipment that was not type-approved was less expensive than similar
equipment that was type-approved.
---------------------------------------------------------------------------

    We then applied percentage price difference between emergency water
products and emergency provisions that had both Coast Guard approval
and met the requirements of ISO 18813, and those emergency provisions
and water products that met only the requirements of ISO 18813.\26\ We
estimate that products without Coast Guard approval affected by this
rule were approximately 28 percent less expensive than products with
Coast Guard approval.\27\
---------------------------------------------------------------------------

    \26\ Although emergency provisions are not subject to changes in
this final rule, we still examined them for the purposes of price
comparison, as doing so provided a depth of data allowing us to
determine a more robust ratio.
    \27\ We calculated this figure by finding the price differential
for those products that were Coast Guard type-approved and those
products that were not Coast Guard-approved but met ISO standards.
We were not able to derive this figure for all of the products due
to lack of industry data. However, given the similarity of the
equipment type, we assume the price differences would be similar for
all products.
---------------------------------------------------------------------------

    We applied this 28-percent price decrease to all the products
affected by this rule, with the exception of first-aid kits, because
the kit content requirements differ between the ISO standard and
current Coast Guard standards, and we estimate the change in price for
first-aid kits by the difference in replacement costs for first-aid
kits. These differences are explained in further detail in the section,
First-Aid Kits, in this RA. For this analysis, we quantified the cost
savings to new vessels from being able to purchase less expensive
equipment, and the cost savings to existing vessels of replacing
expired items with less costly items. For durable items, without data
to estimate how frequently these items are replaced, we are not able to
estimate the cost savings to the owners and operators of existing
vessels for purchasing replacement equipment that we estimate will be
28 percent cheaper. However, since emergency water and first-aid kits
expire, we estimate the cost savings for purchasing replacement
equipment for the owners and operators of both new and existing vessels
based on how frequently this non-durable equipment must be replaced.
This information is presented later in this RA.
Durable Equipment: Bilge Pumps, Compasses, Fishing Kits, Hatchets,
Jackknives, Mirrors, and Sea Anchors
    We estimate that only new vessels will purchase bilge pumps,
compasses, fishing kits, hatchets, jackknives, mirrors, and sea anchors
for their survival craft. Based on population estimates (presented in
table 5), 25 new IBAs, 222 new liferafts, 33 new lifeboats, and 31 new
rescue boats will be subject to this rule each year. Table 6 lists the
survival equipment that lifeboats, liferafts, rescues boats, and IBAs
are required to carry. We multiply the populations in table 5 by the
carriage requirements in table 6 to yield the total number of items
purchased for new survival craft in table 20. The Coast Guard requires
new lifeboats to be equipped with bilge pumps, and there were 33 new
lifeboats recorded in table 5, meaning there will be 33 purchases of
new bilge pumps per year.\28\ Only the new lifeboats with equipment
packs for international voyages will require fishing kits (see table
6), and all new lifeboats and rescue boats will be equipped with
compasses, for a total of 64 purchases of compasses each year. All 280
new IBAs, liferafts, and lifeboats are required to be equipped with
mirrors. Finally, 218 liferafts with a SOLAS A or SOLAS B pack will be
equipped with 2 sea anchors each. This rule will require that 93 IBAs,
lifeboats, rescue boats, and liferafts with coastal service packs each
have 1 sea anchor.
---------------------------------------------------------------------------

    \28\ The Coast Guard requires all non-self-bailing lifeboats and
rescue boats to have bilge pumps. Based on discussions with subject
matter experts in CG-ENG-4, the Coast Guard estimates that all new
lifeboats will be non-self-bailing and will therefore require bilge
pumps, and all new rescue boats that are not also lifeboats will be
self-bailing and therefore will not require bilge pumps.
---------------------------------------------------------------------------

    Table 20 presents the annual cost savings from new vessels removing
Coast Guard approval for bilge pumps, compasses, fishing kits,
hatchets, jackknives, mirrors, and sea anchors. In total, we estimate
an annual cost savings of approximately $78,324 for U.S.-flagged
vessels by removing the type approvals for these 7 types of survival
craft equipment.

Table 20--Annual Cost Savings to New Vessels From Removing Coast Guard Approval for Bilge Pumps, Compasses, Fishing Kits, Hatchets, Jackknives, Mirrors,
                                                                     and Sea Anchors
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      Average  price      Estimated
                                                         of  coast     equipment price                                        Average
                      Equipment                           guard-        without coast      Difference       Number  of       number of      Total cost
                                                         approved      guard approval                     survival craft     items per        savings
                                                         equipment      requirements                                      survival craft
                                                                 (a)  (b) = (a) x 0.72     (c) = (b)-(a)             (d)             (e)     (f) = (c) x
                                                                                (d) x (e)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bilge pump..........................................            $276              $199              -$77              33               1         -$2,541
Compass.............................................           1,250               900              -350              64               1         -22,400
Fishing kit.........................................              41                30               -11              31               1            -341
Hatchet.............................................              28                20                -8              33               2            -528
Jackknife...........................................              34                24               -10              33               1            -330
Mirror, Signaling...................................              19                14                -5             280               1          -1,400
Sea anchor (Liferafts with SOLAS A and SOLAS B                   343               247               -96             218               2         -41,856
 packs).............................................
Sea anchor (Other Survival Craft)...................             343               247               -96              93               1          -8,928
                                                     ---------------------------------------------------------------------------------------------------
    Total...........................................  ..............  ................  ................  ..............  ..............         -78,324
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding. All product prices are rounded to the nearest whole dollar.

Jackknives as a Replacement for Can Openers
    As specified in Sec.  199.175(b)(5), the Coast Guard allows
jackknives to meet the requirements of a can opener, thereby permitting
jackknives to fulfill two requirements. Table 1 in Sec.  199.175 states
that only lifeboats and rigid liferafts with SOLAS A packs require can
openers, and only lifeboats may carry jackknives. This means that rigid
liferafts with SOLAS A packs are currently carrying both knives and can
openers. This rule will allow these vessels to replace their knives
with jackknives, resulting in a cost savings to vessel owners from
being able to purchase only a jackknife instead of both a knife and a
can opener. We estimate that there are a total of 136 new liferafts
each year that carry SOLAS A packs and, further, assume that these
vessel owners and operators will choose to replace a knife with a
jackknife, thus forgoing the need to purchase a can opener.\29\ We
estimate the price of a can opener meeting the requirements of ISO
18813 to be $6.\30\ Therefore, we estimate that vessel owners and
operators will save $816 (136 SOLAS A liferafts x $6 per can opener)
for no longer needing can openers, because of meeting the jackknife
requirements.
---------------------------------------------------------------------------

    \29\ We estimate the cost savings for only one can opener
because the use of a jackknife will only fulfill the replacement
requirement for one can opener.
    \30\ We calculated this by taking the average of 10 can opener
products on the market that meet ISO 18813 requirements. The Coast
Guard will now require that can openers meet the standards of ISO
18813.
---------------------------------------------------------------------------

Emergency Water
    The Coast Guard requires survival craft with SOLAS A packs be
stocked with 3 liters of water per person, and that lifeboats with
SOLAS B packs be stocked with 1.5 liters of water per person. We
estimate the average cost of Coast Guard-approved water to be $4 per
liter,\31\ while the cost of 1 liter of emergency water that meets the
ISO 18813 standard to be $3.\32\ The price difference between the Coast
Guard-approved water and water approved under ISO 18813 is $1 per
liter.\33\ This is the estimated additional cost of Coast Guard
approval, which is counted as cost savings. Emergency water expires and
will need to be replaced every 5 years; therefore, the Coast Guard
estimates that 20 percent of existing survival craft and 100 percent of
new survival craft will need to purchase emergency water annually.
---------------------------------------------------------------------------

    \31\ We calculated this by taking the average of 14 Coast Guard-
approved emergency drinking water products on the market.
    \32\ We calculated this by taking the average of 14 available
emergency drinking water products on the market that were compliant
with ISO 18813 only.
    \33\ To calculate this, we took the average of emergency
drinking water prices that were Coast Guard-approved and subtracted
them from emergency drinking water prices that need only meet the
ISO standard.
---------------------------------------------------------------------------

    We estimate that industry will save a total of $183,255 on an
annual basis (3,215 survival craft x 19 people per survival craft x 3
liters of water x $1 cost savings) for survival craft with SOLAS A
packs during Years 1 through 5 of implementation.\34\ To calculate this
cost savings, we took the 12,690 existing liferafts with SOLAS A packs
and 2,552 lifeboats with international voyage packs (see table 9) for a
total of 15,242 existing survival craft that are required to stock
emergency water. We then estimated that 20 percent (100 percent of
these survival craft / 5 years) or 3,048 survival craft [(12,690
liferafts x 20 percent) + (2,552 lifeboats x 20 percent)] will replace
their emergency water annually. Additionally, all 31 new lifeboats with
international packs and 136 new liferafts with SOLAS A packs (see table
10) are required to buy emergency water. We summed these totals to get
3,215 survival craft that will need to purchase emergency water on an
annual basis (3,048 existing survival craft + 31 new lifeboats + 136
new liferafts). Table 21 presents these cost savings.
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    \34\ We calculated this by taking the average of the survival
craft capacity for all survival craft. We retrieved this data from
the MISLE database in November 2020.
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    In Years 6 through 10, there will be more cost savings, because
vessels will have entirely replaced their survival craft equipment by
Year 6, as described earlier in this rule. Therefore, we estimate an
annual cost savings of about $192,774 [3,382 survival craft (3,215 +
167 new craft) x 19 people per survival craft x 3 liters of water x -$1
cost savings] for survival craft with SOLAS A packs. Table 22 presents
these cost savings.

           Table 21--Total Cost Savings for Coast Guard Approval for Reduced Prices in Emergency Water for SOLAS A Packs in Years 1 Through 5
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                                                             Total        New                 Person per                 Total
                                                           liferafts   lifeboats     Total       life      Liters of     water      Cost of   Total cost
                    Years 1 through 5                         and         and      survival     saving       water     needed in     water      savings
                                                           lifeboats   liferafts     craft       craft     required     liters
                                                                 (a)         (b)   (c) = (a)         (d)         (e)   (f) = (c)         (g)   (h) = (g)
                                                                                + (b)                             x (d) x                   x (f)
                                                                                (e)
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Baseline................................................       3,048         167       3,215          19           3     183,255          $4    $733,020
Post-Regulatory.........................................       3,048         167       3,215          19           3     183,255           3     549,765
Change..................................................  ..........  ..........  ..........           0           0           0          -1    -183,255
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Totals may not sum due to rounding.

           Table 22--Total Cost Savings for Coast Guard Approval for Reduced Prices in Emergency Water for SOLAS A Packs in Years 6 Through 10