memorandum
memorandum
Environment & Resources Division

Date
February 23, 2015

To
Erik Helm

From
Jerry Stedge, Jacky Haskell, Abt Associates

Subject
Approach to Calculating Cost of Capital (EP-W-11-003, WA 4-96, Task 4)

Estimates of the cost of capital for water utilities are used in SafeWater CBX to conduct impact analyses. This memo describes our approach to calculating the weighted average cost of capital that water utilities pay when making capital improvements, using data from the 2006 Community Water System Survey (CWSS).

Overview of 2006 CWSS Data
The CWSS collects operating and financial information from a representative sample of community water systems selected from the federal version of the Safe Drinking Water Information System (SDWIS/Fed). One section of the survey asks questions about funding sources for capital improvements. The following categories of funding sources were defined in the survey:
   * Current revenue;
   * Equity or other funds from private investors;
   * Department of Homeland Security (DHS) grant;
   * Other government grants;
   * Drinking Water State Revolving Fund (DWSRF), including loans and Principal Repayment Forgiveness;
   * Other borrowing from public sector sources;
   * Borrowing from private sectors sources; and
   * Other.
Question 27C of the questionnaire asked systems how they funded "major capital improvements, repairs, and expansions" during the past five years, including the percentage of capital expenses funded from different sources, the associated interest rate paid, and the average loan period. Responses to this question are summarized in Table 106 of the 2006 CWSS report (U.S. EPA, 2009).

The dataset also provides information on the characteristics of the water systems, including their state, system ownership type (private or public), population served (actual numbers and categories of population size), and survey sampling weights. Other survey information (i.e., strata) is not provided.

Approach
We used the CWSS data to calculate the overall weighted average interest rate (across all funding sources and loan periods) for each size/ownership category, weighted by the percentage of funding from each source and using sampling weights. We also calculated the weighted average interest rates for five loan timeframes (<5 years, 5-15 years, 15-30 years, >=30 years, and unknown), across the categories of public and private borrowing. We used the following size categories (in terms of population served): 25-100; 101-500; 501-1,000; 1,000-3,300; 3,300-10,000; 10,000-50,000; 50,000-100,000; 100,000-500,000; and >500,000.

Assumptions
The CWSS collected data on interest rates only for public and private borrowing. Therefore, we made assumptions for the other funding sources. We assume that there is no cost of capital for grants (DHS or other government grants) and for Principal Repayment Forgiveness under DWSRF. For capital improvements financed by equity or other funds from private investors, we use an average interest rate of 9%. We found several examples of the allowable cost of equity for public utility commissions (see Table 1). Based on these sources, a common rate of return is approximately 9%.

Table 1: Data on the Allowable Rate of Return on Equity for Public Utilities
                                     State
                                   Rate (%)
                                  Description
                                    Source
                                   Multiple
                                     9.40
Average rate earned by 76 domestic U.S. utility electric and electric/gas operating companies during the years 2008-2011
Institute for Energy Economics & Financial Analysis, 2013
                                      CA
                                     10.2
Rate set in 2009 for 5 large multi-district Class A water utilities in California
San Jose Water Company, 2011
                                      CA
                                     9.10
Approved rate for Great Oaks Water Company (GOWC) in 2013
GOWC, 2014
                                      CT
                                     9.63
Allowed rate for Aquarion Water Company of Connecticut
State of Connecticut Public Utilities Regulatory Authority, 2013
                                      FL
                                     9.26
Approved rate for Aqua Utilities Florida, Inc. in 2012
Florida Public Service Commission, 2012
                                      ID
                                      12
Rate for Spirit Lake East Water Company
Idaho Public Utilities Commission, 2013
                                      PA
                                   8.11-9.55
Current market indicated rate as calculated by the Bureau of Technical Utility Services
Pennsylvania Public Utility Commission, 2015
                                      WI
                                      5-8
Typical rate for Wisconsin water utilities
Public Service Commission of Wisconsin, 2010

We assume that the cost of capital for current revenue is equal to the system's overall cost of capital from all other funding sources. While there is no interest rate associated with using current revenue as a funding source, there are opportunity costs related to the potential alternative uses of those funds, which include purchasing existing equity capital or retiring existing debt. It is likely that current revenue is often used temporarily to finance capital improvements, until the funding needs are high enough that it is appropriate to incur the transaction costs of new debt or equity financing. Therefore, in the long run, we assume that water systems will maintain their current capital structure, with capital improvements being financed consistent with that structure and its average cost of capital, even if such expenditures are initially financed with a different mix of funding sources.

In the CWSS data, there are some cases where current revenue was used to fund 100% of the system's capital improvements. In such cases, there is no system-specific overall cost of capital to use for current revenue. Considering the potential alternative uses of current revenue, purchasing existing equity is the more likely option, because equity typically has a higher cost of capital than debt. Therefore, we use the rate of return on equity as the cost of capital for current revenue when these funds were used for 100% of capital improvements.

Missing Data
For public and private borrowing, there were missing data for interest rates. For example, the interest rates for private sector loans were missing in 47% of cases where the funding percentage for that funding source was positive. We filled in the missing rates using the average interest rates provided in Table 106 ("Average Interest Rates for Capital Funds By Ownership and Lender") of the CWSS report (summarized in Table 2).

For some size/ownership categories, the report indicated that there were no observations available (indicated by "NA" in Table 2). However, there are some water systems in those size/ownership categories with positive funding percentages but missing interest rates. Therefore, we filled in those rates using the average rate for that ownership category.

Table 2: Average Interest Rates Provided in the 2006 CWSS Report

                             System Size Category
Ownership /
Funding Source
                                    <=100
                                    101-500
                                   501-3,300
                                 3,301-10,000
                                 10,001-50,000
                                50,001-100,000
                                100,001-500,000
                                 Over 500,000
                                      All
Public

DWSRF Loans
                                                                              1
                                                                            2.4
                                                                            1.8
                                                                            3.3
                                                                            3.5
                                                                            2.9
                                                                            3.2
                                                                            3.1
                                                                            2.3
Other Public Sector
                                                                            0.5
                                                                            4.4
                                                                            3.8
                                                                            3.1
                                                                            3.9
                                                                            4.3
                                                                            3.3
                                                                              4
                                                                            3.5
Private Sector
                                                                              5
                                                                            4.2
                                                                            4.7
                                                                            4.9
                                                                            4.5
                                                                            4.4
                                                                            4.3
                                                                            4.6
                                                                            4.6
Other
                                                                             NA
                                                                             NA
                                                                              0
                                                                            4.5
                                                                            4.8
                                                                            4.9
                                                                            1.4
                                                                              1
                                                                            3.9
Private

DWSRF Loans
                                                                             NA
                                                                             NA
                                                                            1.5
                                                                              6
                                                                            6.4
                                                                            0.8
                                                                            6.2
                                                                             NA
                                                                            5.6
Other Public Sector
                                                                            3.1
                                                                            4.5
                                                                            5.5
                                                                            4.6
                                                                            5.3
                                                                            4.8
                                                                            4.6
                                                                             NA
                                                                            4.4
Private Sector
                                                                             NA
                                                                            7.7
                                                                            6.7
                                                                              6
                                                                            4.3
                                                                            7.5
                                                                            5.8
                                                                            6.2
                                                                            6.5
Other
                                                                              6
                                                                             10
                                                                             NA
                                                                             NA
                                                                             NA
                                                                              0
                                                                              0
                                                                             NA
                                                                            5.9
Source: 2006 CWSS Report, Volume II, Table 106 (U.S. EPA, 2009).
DWSRF = Drinking Water State Revolving Fund
NA = not available

Weighted Average Interest Rates
The average interest rates across all funding sources are summarized in Table 3. In most size categories, the interest rates for private systems are higher than those for public systems. The average interest rates range from 3.8% to 8.6%. The average interest rates by loan period (for funding sources involving loans) are presented in Table 4. These rates could not be calculated for some combinations of size/ownership category and loan periods, because there were no observations available (indicated by "NA" in the table).

Table 3: Weighted Average Interest Rates (%) across All Funding Sources
                                 Size Category
                                    Public
                                    Private
<=100
                                                                            3.8
                                                                            7.8
101-500
                                                                            5.5
                                                                            8.2
501-1,000
                                                                            4.0
                                                                            8.6
1,001-3,300
                                                                            4.7
                                                                            7.1
3,301-10,000
                                                                            5.8
                                                                            7.0
10,001-50,000
                                                                            6.1
                                                                            7.0
50,001-100,000
                                                                            4.9
                                                                            6.9
100,001-500,000
                                                                            4.7
                                                                            3.9
Over 500,000
                                                                            3.7
                                                                            7.8

Table 4: Weighted Average Interest Rates (%) by Loan Period [a]

                             System Size Category
Ownership / Loan Period
                                    <=100
                                    101-500
                                   501-1,000
                                  1,001-3,300
                                 3,301-10,000
                                 10,001-50,000
                                50,001-100,000
                                100,001-500,000
                                 Over 500,000
Public

<5-year
                                                                             NA
                                                                             NA
                                                                             NA
                                                                            0.0
                                                                            4.6
                                                                            3.0
                                                                             NA
                                                                            0.0
                                                                             NA
5-15 year
                                                                             NA
                                                                             NA
                                                                            5.6
                                                                            5.9
                                                                            4.9
                                                                            4.2
                                                                            4.0
                                                                            3.4
                                                                            4.3
15-30-year
                                                                            0.6
                                                                            2.5
                                                                            2.2
                                                                            2.5
                                                                            4.3
                                                                            4.0
                                                                            3.8
                                                                            3.8
                                                                            3.6
30+ year
                                                                            1.0
                                                                            4.2
                                                                            5.4
                                                                            3.7
                                                                            3.2
                                                                            4.6
                                                                            4.8
                                                                            4.5
                                                                            4.6
Unknown
                                                                             NA
                                                                            3.7
                                                                            1.1
                                                                            1.8
                                                                            4.2
                                                                            4.4
                                                                            4.5
                                                                            3.3
                                                                            3.2
Private

<5-year
                                                                            6.1
                                                                             NA
                                                                             NA
                                                                            6.0
                                                                             NA
                                                                            6.3
                                                                             NA
                                                                             NA
                                                                             NA
5-15 year
                                                                             NA
                                                                            9.2
                                                                            7.8
                                                                             NA
                                                                            6.0
                                                                             NA
                                                                             NA
                                                                             NA
                                                                             NA
15-30-year
                                                                            3.0
                                                                            7.8
                                                                            5.5
                                                                             NA
                                                                            4.9
                                                                            4.4
                                                                            5.7
                                                                            6.1
                                                                             NA
30+ year
                                                                             NA
                                                                            4.5
                                                                             NA
                                                                            4.8
                                                                            4.6
                                                                             NA
                                                                            1.3
                                                                            5.4
                                                                             NA
Unknown
                                                                            6.1
                                                                            9.9
                                                                            5.9
                                                                            5.9
                                                                            7.7
                                                                            5.6
                                                                             NA
                                                                            3.2
                                                                            6.2
Source: 2006 CWSS data.
NA = not available
   a. The average interest rates for loan timeframes were calculated across the following funding sources only: DWSRF loans, public borrowing, private borrowing, and "other" funding.

Discussion
The weighted average interest rates in Table 3 do not follow clear trends by size category. It is likely that this result is due to small sample sizes and assumptions that do not vary by system size category. For example, the average interest rate of 3.8% for the smallest public systems (serving up to 100 people) is very similar to the average interest rate for public systems serving over 500,000 people (3.7%). However, the interest rate for these small systems is based on a sample of 14 systems, seven of which used current revenue as their only funding source. Therefore, for half of the public systems in the <=100 size category, we assumed an average interest rate of 9% (for equity), which is not based on system size.

Similarly, the average interest rates for the smallest (population served <=100) and largest (population served >500,000) size categories for private systems were both 7.8%. There is only one water system in the larger category. In the smaller category, 34 out of 53 systems used current revenue only; again, we assumed an average rate of 9% for all of these systems.

References
Florida Public Service Commission. 2012. "Aqua Utilities Florida, Inc. Rate Increase Request." Fact Sheet: Docket No. 100330-WS. Available at http://www.psc.state.fl.us/about/decisions/Aqua_Fact_Sheet.pdf (accessed February 11, 2015)
Great Oaks Water Company. 2014. "Application of Great Oaks Water Company (U-162-W) for an Order authorizing it to issue long-term debt in the amount of $4,000,000." Application to the California Public Utilities Commission, January 28, 2014. Available at http://www.greatoakswater.com/ApplicationForAuthorizationToIssueLong-TermDebt.pdf (accessed February 11, 2015)
Idaho Public Utilities Commission. 2013. "New rates effective Nov. 1 for Spirit Lake East Water customers." Case No. SPL-W-13-01, Order No. 32904. October 17, 2013. Available at http://www.puc.idaho.gov/press/131016_SpiritLakeEastfinal.pdf (accessed February 11, 2015)
Institute for Energy Economics & Financial Analysis. 2013. "Public Utility Regulation Without the Public: The Alabama Public Service Commission and Alabama Power." Prepared for Arise Citizens' Policy Project. March 1, 2013. Available at http://www.arisecitizens.org/index.php/component/docman/doc_view/948-arise-report-public-utility-regulation-without-the-public-3-1-13?Itemid=44 (accessed February 11, 2015)
PA Public Utility Commission. 2015. "Bureau of Technical Utility Services Report on the Quarterly Earnings of Jurisdictional Utilities for the Period Ended September 30, 2014." Quarterly Report, 2014 Quarter 2. Public Meeting held January 29, 2015. Docket Number: M-2014-2460381. Available at http://www.puc.state.pa.us/filing_resources/quarterly_earnings_sum_rpt.aspx (accessed February 11, 2015)
Public Service Commission of Wisconsin. 2010. "Introduction to Water Rates." June 2010. Available at https://www.cityoflacrosse.org/DocumentCenter/Home/View/3860 (accessed February 11, 2015)
San Jose Water Company. 2011. "Application of San Jose Water Company (U-168-W) for an Authorized Cost of Capital for Utility Operations for 2012-2014." Application to the California Public Utilities Commission, May 2, 2011. Available at http://www.sjwater.com/files/documents/A1105002_20110502.pdf (accessed February 11, 2015)
State of Connecticut Public Utilities Regulatory Authority. 2013. "PURA Renders Decision on Aquarion Water Rate Request." September 24, 2013. Available at http://www.ct.gov/pura/cwp/view.asp?Q=532350&A=4144 (accessed February 11, 2015)
U.S. EPA. 2009. "2006 Community Water System Survey, Volume II." Office of Water. EPA 815-R-09-002, May 2009. Available at http://water.epa.gov/infrastructure/drinkingwater/pws/cwssvr.cfm (accessed February 12, 2015)
U.S. EPA. 2010. "Drinking Water State Revolving Fund: 2009 Annual Report." Office of Water. EPA 816-R-10-021, November 2010. Available at http://water.epa.gov/grants_funding/dwsrf/upload/dwsrf-annualreport2009nov2010.pdf (accessed December 9, 2014)


[Federal Register Volume 86, Number 160 (Monday, August 23, 2021)]
[Rules and Regulations]
[Pages 46968-46970]
[FR Doc No: 2021-17337]

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

DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2021-0338]
RIN 1625-AA00

Safety Zone; Barge Big Digger and Tugs Kimberly Anne and Andrew J
Operating in the Straits of Mackinac, MI

AGENCY: Coast Guard, DHS.

ACTION: Temporary interim rule with request for comment.

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

SUMMARY: This rule amends an earlier safety zone titled ``Safety Zone;
Tugs Kimberly Anne and Westwind and Barge Big Digger Operating in the
Straits of Mackinac, MI'' issued on May 26, 2021, because one of the
tug vessels named in the earlier rule has changed. The size, duration,
and purpose of the safety zone remains the same. This rule continues to
restrict entry into a 500-yard radius around two tugs and a barge
engaged in pipeline-related work in the Straits of Mackinac. The safety
zone is needed to protect personnel, vessels, and the marine
environment from the potential hazards created by the work, inspection,
diving, and surveying of pipelines in the Straits of Mackinac.

DATES: This interim rule is effective without actual notice from August
23, 2021 through October 15, 2021. Comments and related material must
be received by the Coast Guard on or before September 22, 2021.

ADDRESSES: You may submit comments identified by docket number USCG-
2021-0338 using the Federal eRulemaking Portal at http://www.regulations.gov. See the ``Public Participation and Request for
Comments'' portion of the SUPPLEMENTARY INFORMATION section for further
instructions on submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
call or email LT Deaven Palenzuela, Sector Sault Sainte Marie Waterways
Management Division, U.S. Coast Guard at<PHONE_NUMBER> or email
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. Abbreviations

DHS Department of Homeland Security
FR Federal Register
OMB Office of Management and Budget
Sec.  Section
U.S.C. United States Code

II. Background, Purpose, and Legal Basis

    On May 26, 2021, the Coast Guard published a temporary interim
rule, at 86 FR 28268, that established a temporary safety zone around
the tug vessels KIMBERLY ANNE and WESTWIND, as well as barge BIG
DIGGER. This safety zone is needed to protect personnel, vessels, and
the marine environment from the potential hazards created by the work,
inspection, diving, and surveying of pipelines in the Straits of
Mackinac. In July 2021, the construction company notified the Coast
Guard that it needed to switch out the tug vessel WESTWIND for the tug
vessel ANDREW J. This interim rule amends the existing safety zone to
remove the name of the tug vessel WESTWIND and replace it with the name
of the tug ANDREW J.
    The Coast Guard is issuing this temporary interim rule without
undergoing notice and comment procedures pursuant to section 4(a) of
the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This
provision authorizes an agency to issue a rule without prior public
notice and opportunity to comment when the agency for good cause finds
that those procedures are ``impracticable, unnecessary, or contrary to
the public interest.'' Under 5 U.S.C. 553(b)(B), the Coast Guard finds
that good cause exists for not publishing a notice of proposed
rulemaking (NPRM) with respect to this rule because doing so would be
impracticable and unnecessary. The pipeline work is ongoing and the
barge is on site, and the unexpected switch of attending tug vessel did
not allow time for meaningful public comment before making the change.
Moreover, the change to the specific tug vessel attending the barge BIG
DIGGER does not change the scope, timing, or other details of the
ongoing work, and is therefore of little interest to the public.
    Because this safety zone will be in place until October 15,
however, there is time to provide a 30-day public comment period after
the effective date of this rule. The Coast Guard will consider all
public comments received, and may change the rule in response to
comments if doing so is appropriate.
    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause
exists for making this rule effective less than 30 days after
publication in the Federal Register. For the same reasons discussed
above, delaying the effective date of this rule would be impracticable
and unnecessary.
    The Coast Guard is issuing this rule under authority in 46 U.S.C.
70034 (previously 33 U.S.C. 1231). The Captain of the Port Sault Sainte
Marie (COTP) has determined that potential hazards created by the work,
inspection, diving, and surveying of underwater infrastructure in the
Straits of Mackinac that started June 1, 2021, will be a safety concern
for anyone within a 500-yard radius of the tugs and barge. This rule is
needed to protect personnel, vessels, and the marine environment in the
navigable waters within the safety zone while the operation is
conducted.

III. Discussion of the Rule

    This rule revises an existing safety zone that is anticipated to
continue until October 15, 2021. The safety zone continues to cover all
navigable waters within 500 yards of the barge BIG DIGGER and its
attending tugs, which are being used to work, inspect, dive, and survey
pipelines in the Straits of Mackinac. The duration of the zone is
intended to protect personnel, vessels, and the marine environment in
these navigable waters while the operation is conducted. No vessel or
person will be permitted to enter the safety zone without obtaining
permission from the COTP or a designated representative. The only
change this rule makes to the existing safety zone is a change to the
specific tug named.

IV. Regulatory Analyses

    We developed this rule after considering numerous statutes and
Executive orders related to rulemaking. Below we summarize our analyses
based on a number of these statutes and Executive orders and we discuss
First Amendment rights of protesters.

A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 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.
This rule has not been designated a ``significant regulatory action,''
under Executive Order 12866. Accordingly, this rule has not been
reviewed by the Office of Management and Budget (OMB).
    This regulatory action determination is based on the size and
location of the safety zone. Vessel traffic will be able to safely
transit around this safety zone which would impact a small area of the
Straits of Mackinac. Moreover, the Coast Guard will issue a Broadcast
Notice to Mariners via VHF-FM marine channel 16 about the zone, and the
rule allows vessels to seek permission to enter the zone.

B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as
amended, requires Federal agencies to consider the potential impact of
regulations on small entities during rulemaking. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule
will not have a significant economic impact on a substantial number of
small entities.
    While some owners or operators of vessels intending to transit the
safety zone may be small entities, for the reasons stated in section
V.A above, this rule will not have a significant economic impact on any
vessel owner or operator.
    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this rule. If the rule would affect your
small business, organization, or governmental jurisdiction and you have
questions concerning its provisions or options for compliance, please
call or email the person listed in the FOR FURTHER INFORMATION CONTACT
section.
    Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this rule or any policy or
action of the Coast Guard.

D. Collection of Information

    This rule calls for no new collection of information under the
Paperwork Reduction Act of 1995, 44 U.S.C. 3501-3520.

E. Federalism and Indian Tribal Governments

    A rule has implications for federalism under Executive Order 13132
(Federalism) if it has a substantial direct effect on States, on the
relationship between the National Government and the States, or on the
distribution of power and responsibilities among the various levels of
government. We have analyzed this rule under Executive Order 13132 and
have determined that it is consistent with the fundamental federalism
principles and preemption requirements described in Executive Order
13132.
    Also, this rule does not have tribal implications under Executive
Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it does not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes.

F. Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538,
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Although this rule will not result
in such expenditure, we do discuss the effects of this rule elsewhere
in this preamble.

M. Environment

    We have analyzed this rule under Department of Homeland Security
Management Directive 023-01, Rev. 1, associated implementing
instructions, and Environmental Planning COMDTINST 5090.1 (series),
which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have made
a determination that this action is one of a category of actions that
do not individually or cumulatively have a significant effect on the
human environment. This rule involves a safety zone that will prohibit
entry within 500 yards of tugs and barges used to used to work,
inspect, dive, and survey pipelines in the Straits of Mackinac. It is
categorically excluded from further review under paragraph L[60(a)] of
Appendix A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev. 1. A
Record of Environmental Consideration supporting this determination is
available in the docket. For instructions on locating the docket, see
the ADDRESSES section of this preamble.

G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters.
Protesters are asked to call or email the person listed in the FOR
FURTHER INFORMATION CONTACT section to coordinate protest activities so
that your message can be received without jeopardizing the safety or
security of people, places or vessels.

V. Public Participation and Request for Comments

    We view public participation as essential to effective rulemaking,
and will consider all comments and material received during the comment
period. Your comment can help shape the outcome of this rulemaking. If
you submit a comment, please include the docket number for this
rulemaking, indicate the specific section of this document to which
each comment applies, and provide a reason for each suggestion or
recommendation.
    We encourage you to submit comments through the Federal eRulemaking
Portal at http://www.regulations.gov. If your material cannot be
submitted using http://www.regulations.gov, call or email the person in
the FOR FURTHER INFORMATION CONTACT section of this document for
alternate instructions.
    We accept anonymous comments. Comments we post to https://www.regulations.gov will include any personal information you have
provided. For more about privacy and submissions in response to this
document, see DHS's eRulemaking System of Records notice (85 FR 14226,
March 11, 2020).
    To view documents mentioned as being available in the docket, find
the docket as described in the previous paragraph, and then select
``Supporting & Related Material'' in the Document Type column. Public
comments will also be placed in our online docket and can be viewed by
following instructions on the https://www.regulations.gov Frequently
Asked Questions web page. We review all comments received, but we will
only post comments that

address the topic of the rule. We may choose not to post off-topic,
inappropriate, or duplicate comments that we receive.

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and record
keeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard amends
33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

0
1. The authority citation for part 165 continues to read as follows:

    Authority: 46 U.S.C. 70034, 70051; 33 CFR 1.05-1, 6.04-1, 6.04-
6, and 160.5; Department of Homeland Security Delegation No. 0170.1,
Revision No. 01.2.

0
2. Amend Sec.  165.T09-0338 by revising the section heading and
paragraph (a) to read as follows:

Sec.  165.T09-0338  Safety Zone; Tugs Kimberly Anne and Andrew J and
Barge Big Digger operating in the Straits of Mackinac, MI.

    (a) Location. The following areas are safety zones: All navigable
water within 500 yards of the Tugs Kimberly Anne and Andrew J and Barge
Big Digger while conducting work, inspection, diving, and surveying of
pipelines in the Straits of Mackinac.
* * * * *

    Dated: August 9, 2021.
A.R. Jones,
Captain, U.S. Coast Guard, Captain of the Port Sault Sainte Marie.
[FR Doc. 2021-17337 Filed 8-20-21; 8:45 am]
BILLING CODE 9110-04-P