2024-19839. Great Lakes Pilotage Modernization

Table 1—Affected Population 2018-2023

	Pilots	Temporary Registered Pilots	Apprentice Pilots	Total
2023	56	3	6	65
2022	51	2	9	62
2021	54	3	8	65
2020	52	3	13	68
2019	51	3	8	62
2018	49	3	7	59
Average (2018-2022)	51.4	2.8	9	63.2
*  Note: Data provided above for each year (inclusive of Year 2023) are projections based on pilot association estimates. We have chosen to draw the average from 2018-2022.

( print page 76325)

Costs

Most of the cost impacts for this rule have already been realized by industry. As a result of the 2018 ratemaking final rule, a new staffing model was established, and updates to the Great Lakes Pilotage Management System (GLPMS) data management system occurred. 2018 also saw the Director provide industry and associations informal guidance on many of the cost provisions found in this rulemaking. This informal guidance directly impacted current industry practices referenced in this rulemaking.

Therefore, to provide a comprehensive estimate of the impacts of this rulemaking, the Coast Guard utilizes two baselines, a “Pre-Guidance” baseline” and a “No Action” baseline. The Pre-Guidance baseline captures costs across two different time horizons. First, it provides transparency regarding costs realized from 2018-2022 due to informal guidance becoming industry practice. Second, it captures new cost impacts across a 10-year period of analysis from 2023-2032 that stem from this rulemaking. Therefore, the entire period of analysis for the Pre-Guidance baseline is 2018-2032. The No Action baseline represents the current state of the world, as if there were no rulemaking. Quantifying costs against the No Action baseline entails including only costs directly attributable to this rule and excludes any costs derived from 2018 guidance. The period of analysis for costs relative to the No Action baseline is 2023-2032. See table 2 for a visual depiction of the baselines.

Table 3 shows the summary of net costs, broken down by each of the two baselines. The figures shown for each baseline are in 2022 dollars and are discounted at 7 percent.

Table 3—Summary of Net Costs by Baseline

[2022 Dollars]

	Pre-Guidance baseline (2018-2032; discounted 7%)	No Action baseline (2023-2032; discounted 7%)
Net Private Costs to Industry	Net Costs to Industry: ($720,755.13) Annualized Net Costs to Industry: ($56,422.19)	Net Costs to Industry: ($834,809.05) Annualized Net Costs to Industry: ($118,858.03)
Net Costs to Government	Net Costs to Government: $12,540.65 Annualized Net Costs to Government: $981.71	Net Costs to Government: $0.00 Annualized Net Costs to Government: $0.00
Total Net Costs	Total Net Costs: ($708,214.47) Annualized Net Costs: ($55,440.48)	Total Net Costs: ($834,809.05) Annualized Net Costs: ($118.858.03)
*  Note: Components may not add to the totals due to rounding.

( print page 76326)

The no-cost category, summarized in table 4, includes changes that have no cost, because the change is administrative where the regulatory text needs revision for clarity to reflect reorganization of the text. It also includes changes that result in no costs for either baseline, where the substantive action occurred prior to 2018 (through either existing regulatory text or longstanding guidance). For many of the cost items, the affected population already realizes the impact of the changes from prior ratemakings and general changes to industry's current practice. Certain items in table 4 solely represent information collection costs, rather than new regulatory costs. Note that information collection costs include any cost of ongoing reporting or recordkeeping that must be submitted to the Coast Guard.

Table 4—Summary of No-Cost Changes

CFR section	Description of change	Reason for no cost	Benefits
Purpose: § 401.100	Adds the word “pilotage” to clarify the part relates to the creation of “pilotage pools”	This is an administrative change; pilotage is an older term from the 1960's, whereas pilotage pools are more commonly used today, but both refer to the same thing	Further clarifies the purpose of the section and reduces confusion.
Purpose: § 401.100	Adds text to clarify that “Registered Pilots” refers to “United States Registered Pilots”	This is an administrative change that makes explicit that the regulation does not include Canadian Pilots, which is implicit based on the contextual language	Further clarifies the purpose of the section and reduces confusion.
Definitions: § 401.110	Removes numbering of definitions and arrangement in alphabetical letter	This is an administrative change	Eases finding definitions, increasing readability and clarity.
Definitions: § 401.110	Adds the definition for “Applicant” to clarify that an “Applicant” is a person who has submitted a Form CG-4509 to the Director to be considered for placement in an approved U.S. Great Lakes pilot training and qualification program at one of the established pilotage pools	This is an administrative change that distinguishes an applicant awaiting an acceptance decision from an Applicant Trainee accepted into training	Further clarifies the differences between an “Applicant,” “Applicant Trainee,” and “Apprentice Pilot”, which were previously not distinguished but all referred to synonymously as “applicant”.
Definitions: § 401.110	Modifies the definition of “Applicant Trainee” to clarify that an Applicant Trainee is a person approved and certified by the Director, who is participating in an approved U.S. Great Lakes pilot training and qualification program but does not qualify as an Apprentice Pilot	This distinguishes an Applicant Trainee accepted into training from an applicant awaiting an acceptance decision	Further clarifies the differences between an “Applicant,” “Applicant Trainee,” and “Apprentice Pilot”, which were previously not distinguished but all referred to synonymously as “applicant”.
Definitions: § 401.110	Removes the last sentence from the definition of Apprentice Pilot, “This definition is only applicable to determining which pilots may be included in the operating expenses, estimates, and wage benchmark in §§ 404.2(b)(7), 404.103(b), and 404.104(d) and (e)”	The base definition of Apprentice Pilot is unchanged	Clarifies how this definition is used in conjunction with the new definitions of Applicant and Applicant Trainee, which were not used when the term Applicant Pilot was first introduced.
Definitions: § 401.110	Modifies the definition of “association” to clarify that the Director of Great Lakes Pilotage issues a Certificate of Authorization, not the Great Lakes Pilotage Branch	This is an administrative change that does not change the method of authorization but clarifies the source of authority	Adds additional clarity to the source of the Director's authority and reduces confusion on what actions are the responsibility of the Coast Guard and what is the responsibility of the Director.
Definitions: § 401.110	Updates the abbreviation of “Commandant” from “CG-00” to “CCG”	This is an administrative change	Adds additional clarity and reduces confusion.
Definitions: § 401.110	Adds a definition for “chemical test”	This is an administrative change. The new definition is the same as the existing definition in 46 CFR 4.03-7	Adds additional clarity and reduces confusion.
Definitions: § 401.110	Updates the address for the Director from “Commandant (CG-WWM-2), to Attn:” to “Director”	This is an administrative change	Adds additional clarity and reduces confusion.
Definitions: § 401.110	Updates the definition for “comparable experience”	This is an administrative change. It clarifies that experience similar to experience on a vessel of 4,000 GT or over can be used to qualify as an applicant	It has the unquantifiable benefit of expanding the number of potential applicants using experience from other areas of the U.S. to qualify as an applicant. To date, this has not occurred.
Definitions: § 401.110	Adds the definition of “Full Registration” for additional clarity	This is an administrative change that does not change the requirements to achieve Full Registration, but distinguishes the different types of registration	Further clarifies the difference between Full, Limited, and Temporary Registrations.
Definitions: § 401.110	Updates the definition for “Limited Registration”	This is an administrative change that distinguishes from a Temporary Registration where, previously, “temporary” referred to multiple types of registration. This does not change the current requirements for receiving any of the types of registration	Further clarifies the difference between Full, Limited, and Temporary Registrations.
Definitions: § 401.110	Creates a definition for “marine accident”	This is an administrative change that distinguishes between reportable marine casualties that are sent to the Coast Guard under 46 CFR part 4, and accident reports of those casualties that are sent to the Director if the casualty affects pilotage	Further clarifies 46 CFR 401.260(a), incident reporting requirements for Pilots on the Great Lakes. The requirement to notify the Director is not new, but differentiating the kinds of reports makes it clearer to whom the notice must be given.
( print page 76327)
Definitions: § 401.110	Creates a definition for “minimum number of round trips”	This does not change the existing minimum requirements, which are detailed in 401.220(b). This addition clarifies that the number of trips applies to trips conducted by an Apprentice Pilot, not by an Applicant Trainee	Further clarifies round-trip requirements for Apprentice Pilots to be in line with added distinctions between Apprentice Pilots and Applicant Trainees.
Definitions: § 401.110	Renames the term “pool” to “pilotage pool” and adds additional text to the definition	This is an administrative change that better aligns with current authorization language.	Further clarifies that pilotage pools are organizations holding a Certificate of Authorization issued by the Director, which are the three existing pilot associations for each of the three districts.
Definitions: § 401.110	Adds additional text to the term “rate computation definitions” to clarify that these definitions are used to determine the weighting factors in the rate	This is an administrative change	Further clarifies how the weighting factors are calculated.
Definitions: § 401.110	Adds definition for “round trip”	This is an administrative change	Further clarifies what is considered a round trip.
Definitions: § 401.110	Adds definition for “Semi-annual Performance Evaluation Report”	This is an administrative change	Further clarifies the Semi-annual Performance Evaluation Report.
Definitions: § 401.110	Adds the additional text to the definition of “United States Registered Pilot”	This is an administrative change	Updates text to reference current U.S. Code sections and mariner credentialing requirements.
Application for registration: § 401.200	Adds email address and physical mailing address for submission of Form CG-4509	This is an administrative change	Adds email address and physical mailing address to make it easier for the regulated public to submit the form.
Application for registration: § 401.200	Removes text requiring two photographs be submitted with Form CG-4509	Form CG-4509 already requires the submission of two signed photographs. This change merely removes duplicative text, not the requirement to submit the photographs	Adds clarity by removing duplicative text.
§ 401.210(a)	Changes “Requirements and qualifications for Registration” to “Requirements and qualifications for Full Registration”	This is an administrative change	Further clarifies Full Registration in comparison to requirements for new definitions.
§ 401.210(a)	Adds the word “fully”	This is an administrative change	Adds clarity by matching title to altered text in the body paragraph.
§ 401.210(a)(1)	Adds clarifying text updating authority from “revised statutes” to specify 46 CFR part 11, removing “license or MMC” to read “MMC with an officer endorsement”, and replacing “tows” with “barge” in “integrated tug and barge”	This change removes outdated language, and it updates to the most current authority citations to provide clarity. However, it does not change existing requirements	Adds clarity by making the citation more specific. Mariners are no longer issued licenses but credentials with endorsements. This change replaces outdated language with more current language and authorities. The emphasis on barges clarifies that Pilots must be credentialed deck officers, and the tonnage requirements apply to an integrated tug and barge, not the aggregate tonnage of a tug and tow.
§ 401.210(a)(4)	Adds “applicable” to “applicable medical requirements and standards” and the CFR citation to the existing requirements	This is an administrative change as the requirements in the cited CFR section are unchanged	Improves clarity of the source of requirements.
§ 401.210(a)(6)	Removes text specifying a requirement to hold a TWIC in addition to an MMC	TWICs are already required to hold an MMC, so specifying both is redundant	Increases clarity and readability of the CFR by removing unnecessary text.
§ 401.210(a)(7)	Removes unnecessary text and changes the term “Applicant Pilots” to “Apprentice Pilots”	This is an administrative change necessary to make text consistent with new, added definitions in other sections that clarify between applicants, Applicant Trainees, and Apprentice Pilots	Increases clarity and readability of the CFR by removing text specifying application for pilotage, which is already specified in the title of the section. Increases clarity by changing “Applicant Pilots” to “Apprentice Pilots” to be consistent with definition changes.
§ 401.210(a)(8)	Adds new paragraph requiring the individual to meet the chemical testing requirements in 46 CFR part 16 for Full Registration	This is an administrative change that integrates references to the existing source of requirements rather than restating requirements. This is an existing requirement for all mariners holding an MMC, per 46 CFR 10.209(h) and 46 CFR part 16	Adds clarity by making citation more specific and eliminating the need to update text when parts of 46 CFR part 16 change.
§ 401.211	Changes text from “Applicant Pilots” to “Apprentice Pilots” to be consistent with new terms	This is an administrative change necessary to make text consistent with new definitions added in other sections	Adds clarity and consistency for references to new definitions.
§ 401.211(b)	Creates new paragraph (b) containing current text	This is an administrative change necessary to detail changes in the organization of the text	Adds clarity and better readability by making requirement list stand out within the paragraph.
§ 401.211(b)(3)	Adds citation to 46 CFR part 11.480 to clarify requirements to obtain Radar Observer qualification but does not change the existing requirement to hold a Radar Observer qualification	Pilots must already hold a Radar Observer qualification	Adds clarity by making citation more specific and eliminating the need to update text when parts of 46 CFR part 11.480 change.
§ 401.211(e)	Adds address for submission of Form CG-4509	This is an administrative change	Adds email and mailing address to make it easier for the regulated public to submit forms.
§ 401.211(e)	Adds text requiring two photographs be submitted with Form CG-4509 to provide clarity since § 401.200 no longer requires it	This is an administrative change that does not alter the existing requirements of Form CG-4509	Clarifies the requirements for submitting Form CG-4509 where methods of submission are discussed.
( print page 76328)
§ 401.211(f)	Creates new paragraph (f), modifying text to clarify who may be issued a U.S. Coast Guard Apprentice Pilot ID Card. Replaces the terms “applicant” and “Applicant Pilot” with “Apprentice Pilot”	This is an administrative change	Improves clarity and makes text consistent with definitions.
§ 401.211(f)(1)	Adds new paragraph stating the Director may set an expiration date for the Apprentice Pilot ID Card	This is an administrative change	Improves clarity.
§ 401.211(f)(4)	Minor wording changes	This is an administrative change	Improves clarity by specifying the ID card is withdrawn.
§ 401.211(i)	New paragraph requires Apprentice Pilots to be enrolled in the association's chemical testing program	This change simply updates text, as this is already required as part of casualty reporting	Improves clarity of applicability to make all text consistent across new sections that specify requirements for applicants, Applicant Trainees, and Apprentice Pilots.
§ 401.211(k)	New paragraph outlines requirements for Full Registration, including passing an exam, a positive endorsement from the association, and the determination by the Director of the need for an additional Pilot	This change updates text to describe current practice. The impact of the change from prior text has already been realized in 401.220(b)	Creates clarity by detailing section title for Apprentice Pilot to be consistent with new terms.
§ 401.214	Adds new section with requirements for Applicant Trainees	This is an administrative change to separate requirements to Applicant Trainees and Apprentice Pilots in accordance with definitions	Creates clarity by codifying requirements for Applicant Trainees in a separate, new section distinct from Apprentice Pilots, so that requirements are in clearly distinct sections and consistent with new terms. The requirements themselves are not new, as they were in place when all stages of training were referred to indistinguishably as applicants.
§ 401.214(b)	New paragraph adding qualifications to be considered an Applicant Trainee	This is an administrative change necessary to distinguish applicants from Applicant Trainees. Use of this term is already common practice	Creates clarity by listing requirements in clearly distinct sections and consistent with new terms. The requirements themselves are not new, as they were in place when all stages of training were referred to indistinguishably as applicants.
§ 401.214(e)	New paragraph clarifies that Applicant Trainees must submit an application on Form CG-4509	Applicant Trainees have already been submitting these forms, but the regulatory text did not reference Applicant Trainees specifically. This practice predates any guidance issued in 2018 and is not a result of this rulemaking. This new clarifying paragraph codifies a longstanding practice. Therefore, this is a no-cost change in both our Pre-Guidance baseline (2018-2032) and our No Action baseline (2023-2032)	Improves clarity by codifying the requirement that Applicant Trainees must submit an application. The requirement itself is not new and is a long-standing practice.
§ 401.220(b)	Changes the term “Applicant Pilot” to “Apprentice Pilot”	This is an administrative change necessary to make text consistent with new definitions added in other sections	Creates clarity by listing requirements in clearly distinct sections and consistent with new terms. The requirements themselves are not new, as they were in place when all stages of training were referred to indistinguishably as applicants.
§ 401.220(b)(2)	Clarifies that Apprentice Pilots, not Applicant Pilots, must complete the approved course of instruction prescribed by the association authorized to establish the pilotage pool	This is an administrative change necessary to make text consistent with new definitions for applicant, Applicant Trainee, and Apprentice Pilot	Increases clarity of the CFR to specify where “Apprentice Pilot” replaces the previous term “Applicant Pilot”
§ 401.220(b)(3)	Minor wording changes to improve clarity and readability	This is an administrative change necessary to make text consistent with new definitions added in other sections	Removes outdated and gendered references consistent with changes in other sections. The change clarifies that the written exam comes after the requirements set forth in (b)(1) and (b)(2).
§ 401.220(c)	Changes wording to be consistent with new definitions of Apprentice Pilot and Applicant	This is an administrative change necessary to make text consistent with new definitions added in other sections	Increases clarity of the CFR to specify where “Apprentice Pilot” replaces the previous term “Applicant Pilot”.
§ 401.220(d)	Changes wording to be consistent with new definitions and removes outdated reference to Title 52 of Revised Statutes	This is an administrative change necessary to make text consistent with new definitions added in other sections	Increases clarity of the CFR to specify where “Apprentice Pilot” replaces the old language and remove gendered references.
§ 401.220(e)	Deletes paragraph	This is an administrative change	Increases clarity of the CFR necessary to be consistent with new sections.
§ 401.222	Adds new section to move Temporary Registration requirements to their own section for clarity	This is an administrative change that updates organization of the part	Creates clarity by making requirements clear and consistent with a section for each category of applicant, Applicant Trainee, Apprentice Pilot, Pilot, and Temporary Registered Pilot.
§ 401.222(a)	New paragraph that clarifies who may hold a Temporary Registration	This is an administrative alteration that changes organization of the text but does not change the requirements	Creates clarity by making requirements clear and consistent with a section for each category of applicant, Applicant Trainee, Apprentice Pilot, Pilot, and Temporary Registered Pilot.
§ 401.230(a)	Minor wording change, updates statutory reference	This is an administrative change necessary to make text consistent with new definitions added in other sections	Updates text to reference U.S. Code to improve clarity.
( print page 76329)
§ 401.230(a)	Updates statutory references and makes minor wording changes to improve clarity and readability	This is an administrative change removing outdated references	Improves clarity of the CFR.
§ 401.230(c)	Modifies to include more up-to-date terms and methods of copying documents	This is an administrative change necessary to make text consistent with new definitions added in other sections	Increased clarity as “Photostat” is not a common term.
§ 401.240(d)	Minor wording changes, replaces the word “Commandant” with “Director”	This is an administrative change	Improves clarity by better matching the language used by industry.
§ 401.250(d)	Removes the word “license”	This is an administrative change that does not change the requirement to have an MMC	Improves clarity and eliminates confusion as to what “license” refers to.
§ 401.260(a)	Clarifies reporting requirements also apply to Pilots on a Limited or Temporary Registration and other minor wording changes	This is an administrative change necessary to make text consistent with new definitions added in other sections	Creates clarity by making requirements clear and consistent with new terms.
§ 401.260(a)	Reformats report contents from a paragraph to a numbered list	This is an administrative change reflecting organization of text	Improves clarity by making the list of requirements more legible.
§ 401.260(a)	Modifies 401.260(a) to add clarity regarding the existing practice of receiving marine accident reports. It outlines that a written report is required when a marine incident occurs while an Apprentice Pilot, Apprentice Pilot with Limited Registration, United States Registered Pilot, or Temporary Registered Pilot is providing pilotage services	This practice predates any 2018 guidance. The Director's office already receives these reports and does not expect the trend in reports received to change as a byproduct of this rulemaking. The submission requirement for these reports is found in § 401.260 and originated in 31 FR 9065.16 Therefore, it is a no-cost change in both our Pre-Guidance baseline (2018-2032) and our No Action baseline (2023-2032)	Improves clarity on the format of the submission and when the marine accident report is required.
§ 401.260(a)(7)	Adds requirement for Pilots to share the results of post-casualty drug and alcohol tests in the notice to the Director	This does not change the requirement for testing governed by 46 CFR 4.06-3. Rather, § 401.260(a)(7) details what information must also be shared with the Director if a reportable casualty affects pilotage	Improves clarity by making requirements easier to find in an explicit list.
§ 401.420(c)	Minor wording changes, clarifies that the vessel Master determines weather delays	This is an administrative change since this is already industry practice	Further clarifies who determines whether an interruption is caused by weather.
§ 401.425	Removes provisions governing Canadian approval of double pilotage	This is an administrative change since the Director does not have to confer with the Canadians to approve pilotage and has not had to. The reference to Canada was erroneous	Adds additional clarity, as the Director approves double pilotage for the United States Pilots but has no jurisdiction over Canadian Pilots. Canadian Pilots base their decisions on different criteria, though both countries may notify each other of their decision to approve double pilotage to assist in pilotage assignments.
§ 401.425	Removes the undesignated waters of Lake Erie from the Southeast Shoal to Colborne restrictions and states that the Director will evaluate dual pilotage on a case-by-case basis	This change updates text, as the Director can already require double pilotage as the situation dictates. The regulatory text was outdated, and double pilotage is allowed in this area when needed	Improves clarity by removing outdated language.
§ 401.431(a)	Establishes a 60-business-day billing dispute deadline, minor wording changes	There has only been one instance of a dispute longer than 60 days. We do not expect any further impacts	Improves clarity and reduces the likelihood of a dispute occurring after the books have been closed.
§ 401.431(d)	Minor wording changes to clarify that the pilot association is the respondent, and they have 20-business days to defend disputed charges starting from when they receive the notice of appeal. Previous text listed 20 days without specifying business days or when those days would begin counting. No previous dispute exceeded 20 days	This process predates the 2018 guidance. The ability to appeal (§ 401.431(d)) was initially added to the CFR via 29 FR 10467 (July 28, 1964).17 No changes to this behavior occurred over 2018-2022. The Coast Guard does not expect wording changes in this rulemaking to alter behavior from the pilot association. Therefore, it is a no-cost change in both our Pre-Guidance baseline (2018-2032) and our No Action baseline (2023-2032)	Improves clarity on who is considered the respondent and the exact timeline for any pilot association wishing to defend disputed charges.
§ 401.431(e)	Minor wording changes to clarify that the Director responds with an advisory opinion within 30 working days. Previous text did not specify a specific number of days	No cost. This process predates 2018 guidance. Section 401.431(e) was initially added to the CFR via 29 FR 10467 (July 28, 1964).18 No changes to this behavior occurred from 2018-2022. The Coast Guard does not expect wording changes in this rulemaking to alter the Director's behavior in responding with advisory opinions. The text simply clarifies a longstanding practice	Improves clarity for pilot associations submitting charge disputes as to when an advisory opinion can be expected from the Director.
§ 401.431(h)	Creates new paragraph (h) that codifies the existing practice of pilot associations appealing the advisory opinion made by the Director. The regulatory text specifies that the associations may do so within 10 days of receiving the opinion	This process predates any 2018 guidance. This paragraph is codifying this long-standing practice performed by the pilot associations. Neither the 2018 guidance nor this rulemaking substantively modifies this pilot association practice. Therefore, it is a no-cost change in both our Pre-Guidance baseline (2018-2032) and our No Action baseline (2023-2032)	Improves clarity by codifying the existing ability for pilot associations to appeal the advisory opinion made by the Director. The practice itself is not new and is a longstanding practice.
( print page 76330)
§ 401.450(b)	Removes the effective date for the establishment of the pilot change point at Iroquois Lock	This is an administrative change since the date has passed	Improves clarity, as the text is outdated from when change point was first introduced.
§ 401.450(i)	Replaces Gros Cap with Buoy 33, St. Marys River, Point Iroquois	This moves the change point to a more convenient location; it does not change the number of change points	Makes text consistent with change points currently used. This change point is a new location in the river, closer to the locks and a safer location to transfer Pilots on and off the pilot boat. Gros Cap was too far out in the bay (about 2 nautical miles), and the transfers were affected by the weather and transit time.
§ 401.450(k)	Replaces Gros Cap with Buoy 33	See above	See above.
§ 401.510(b)(3)-(7)	Deletes outdated text	This is an administrative change removing outdated references that refer to old systems of communication in paragraph (b)(3) and references to when the Coast Guard was part of the Department of the Treasury in paragraphs (b)(4)-(7)	Improves clarity of the CFR by removing outdated text.
§ 401.710(b)	Updates MOU reference and date	This is an administrative change removing outdated references	Improves clarity of the CFR.
§ 402.220(a)	Adds discretion for the Director or association to require additional round trips in a particular area as part of meeting the overall minimum number of round trips requirement.	This codifies an existing practice that does not change the total number of trips to meet the minimum but may change where those trips occur to ensure that the experience in training is representative of future operations	Improves clarity of the CFR.
§ 402.220(a)(5)	Removes section describing requirement for training in foreign languages	This is an administrative change removing outdated references as these courses are no longer required under the Standards of Training, Certification, and Watchkeeping (STCW)	Improves clarity of the CFR.
§ 402.220(a)(7)	Updates MOU reference	This is an administrative change removing outdated references	Improves clarity of the CFR.
§ 402.220(a)(10)	Removes paragraph	This is an administrative change removing outdated references	Improves clarity of the CFR.
§ 402.320(a)	Removes reference to each working rule individually and instead makes all rules available electronically by email request	This is an administrative change, as the same information remains available. The Coast Guard has never received a request for a paper copy of a working rule	Improves clarity and electronic access of information by the public and eliminates the need to provide a technical amendment whenever the date of a working rule changes.

The information collections in this final rule are actions that the affected population of Pilots and pilot associations have already complied with in prior years. Prior to this rulemaking, the Coast Guard had not codified the burden for these collections into the information collection request for the Great Lakes Pilotage Rate Methodology (OMB Control Number 1625-0086).^[19] We present details on past reporting and estimated future regulatory costs to industry in table 5, broken down by each of the two baselines. Table 5 also details relevant regulatory costs that concurrently act as information collection costs.

Table 5—Summary of Costs by Baseline

[2022 Dollars, discounted at 7%]

CFR section	Description of change	Pre-Guidance baseline (2018-2032)	No action baseline (2023-2032)
Definitions: § 401.110	Creates a definition for “individual training plan.” Prior to 2018, associations used the same template plan for the entire district, rather than individualizing plans	The Coast Guard began receiving individualized training plans in 2018. Beginning in 2018, individualized training plans took 2 hours to prepare. This hour burden per training plan is expected to remain consistent (2 hours) across 2018-2032 Total Cost to Industry 2018-2032: $10,015.59 Annualized Cost: $784.04	No cost. No expected changes in cost from this rule when compared with cost of informal guidance issued in 2018. Our No Action baseline excludes any costs directly attributed to the guidance.
( print page 76331)
§ 401.211(g)	Adds new paragraph that codifies existing practice of requiring the Director to approve Apprentice Pilots individual training plans	The Coast Guard began requiring the Director approve these individual training plans in 2018 (same year the agency began receiving the individualized training plans). Beginning in 2018, we assume that it takes the Director 30 minutes to review. This hour burden per training plan is expected to remain consistent (0.5 hours) across 2018-2032 Total Cost to Government 2018-2032: $3,899.46 Annualized Cost: $305.26	No cost. No expected changes in cost stemming from this rule when compared with informal guidance issued in 2018. Our No Action baseline excludes any costs directly attributed to the guidance.
Definitions: § 401.110	Adds definition for “Temporary Registered Pilot”	2018-2022: In the 2023 annual ratemaking, the Coast Guard utilized the definition of Temporary Registered Pilot to reduce the number of Temporary Registered Pilots projected 2023-2032: Any further impacts will be realized through a ratemaking	Any further impacts will be realized through a ratemaking.
§ 401.211(h)	Adds a new section that codifies existing practice of requiring Apprentice Pilots to have a Semi-annual Performance Evaluation Report	This requirement began via informal guidance in 2018. An average of 5 Apprentice Pilots annually submit 18 reports on average. Submissions require 6 hours per report. A review of these reports at the Director's office takes 20 minutes (0.33 hours) per report. These hourly burdens remain unchanged across 2018-2032 Total Cost to Industry 2018-2032: $99,875.41 Annualized Cost: $7,818.45 Total Cost to Government 2018-2032: $8,641.19 Annualized Cost: $1,053.61	No cost. No expected changes in cost stemming from this rule when compared with informal guidance issued in 2018. Our No Action baseline excludes any costs directly attributed to the guidance.
§ 401.230(d) and § 401.240(a)	Adds additional text to clarify the nature of photographs submitted to the Coast Guard. Provides clarity by using common language for “passport style” photographs that is more easily understood. The Coast Guard requires a signed photograph inserted into Certificates of Registration, as the photograph with the signature is used in making certificates. In some cases, the photograph submitted is too far away from the face of the subject, and to capture the signature a portion of the person may be cut off. This change eliminates these issues and needing new photographs to be submitted	2018-2022: Applicants have been asked to resubmit photographs only a handful of times since 2018 2023-2032: No cost. Potential for cost savings if the number of photographs retaken is reduced. This cost saving could not be quantified given the limited number of times a cost has been incurred to retake photographs and that cost was never quantified	No additional cost stemming from rulemaking. Potential for cost savings if the number of photographs retaken is reduced. This cost saving could not be quantified, given the limited number of times a cost has been incurred to retake photographs, and the absence of public input on the matter. That cost was never quantified.
§ 401.260	Removes paragraph (d), which required submission of monthly availability reports	2018-2022: No cost savings. This process predates 2018 guidance and has not changed in scope during 2018-2022, due to guidance. The requirement to provide these originates in 31 FR 9065 (July 1, 1966).20 From 2018-2022, associations kept record of approximately 672 monthly availability reports each year during the 10 months between when the locks are opened and closed, for each Pilot and Apprentice Pilot on roster 2023-2032: If Coast Guard continued to require these reports, we expect to receive 650 annually. It is estimated that each monthly report takes 2.5 hours to submit. Removing this required submission results in cost savings over 2023-2032 Total Cost Savings to Industry (2018-2032): $(835,065.99) Annualized Cost Savings: $(65,370.68)	Cost savings over 2023-2032 are attributed only to this rulemaking and are not a byproduct of any guidance over the 2018-2022 timeframe. Therefore, our cost savings in the No Action baseline equate to those in our Pre-Guidance baseline. Removing the submission requirement results in cost savings over the No Action baseline period of analysis (2023-2032). Total Cost Savings to Industry (2023-2032): $(835,065.99). Annualized Cost Savings: $(118,894.61).
( print page 76332)
§ 401.431(b)	Changes “in writing” to “official correspondence”, and adds requirements for what information must be in the appeal, rather than Coast Guard receiving disputes in varying formats	2018-2022: No cost. The appeal process did not originate from 2018 guidance. The ability to appeal (§ 401.431(b)) was initially added to the CFR via 29 FR 10467 (July 28, 1964).21 2018 guidance did not alter any aspect of this existing requirement 2023-2032: With the changes, the Coast Guard estimates that forthcoming submissions will take 1 hour each, an additional 30 minutes per report. To avoid double counting an existing regulatory cost associated with these reports, the “Pre-Guidance” baseline uses 0.5 hours for the time burden. The Coast Guard estimates receiving one of these reports annually over 2023-2032 Total Cost to Industry 2018-2032: $256.94 Annualized Cost: $20.11	Costs over 2023-2032 are attributed only to this rulemaking and are not a byproduct of any guidance over the 2018-2022 timeframe. Therefore, our cost savings in the No Action baseline equate to those in our Pre-Guidance baseline. The changes result in costs over our No Action baseline period of analysis (2023-2032). Total Cost to Industry 2023-2032: $256.94. Annualized Cost: $36.58.
§ 402.210(a)	Adds Apprentice Pilots and Temporary Registered Pilots. Adds citation to current CFR requirements for all Pilots to pass a physical examination. Given this edition, it equates to more than an editorial change	This requirement began via informal guidance in 2018. This change impacts mariners who submit Apprentice Pilot applications to the Director. From 2018-2022, the Coast Guard received an average of 15 such applications annually. Each medical certificate takes about 18 minutes (0.3 hours) to draft and submit. The Coast Guard expects no change in behavior or burden over 2023-2032 because of this rulemaking Total Cost to Industry 2018-2032: $4,162.92 Annualized Cost: $325.88	No cost. No expected changes in cost stemming from this rule when compared with informal guidance issued in 2018. Our No Action baseline excludes any costs directly attributed to the guidance.
§ 402.210(b)	Removes paragraph	Cost included in change to § 402.210(a)	No cost.
§ 402.210(c)	Removes paragraph	Cost included in change to § 402.210(a)	No cost.

Costs: Pre-Guidance Baseline

This section outlines regulatory costs in accordance with the Pre-Guidance baseline. Therefore, costs from 2018-2022 stemming from the 2018 guidance are included, as applicable. The Coast Guard estimates that the cost over the 2018-2022 period is zero in cases where the rulemaking is (1) instituting a brand-new requirement; (2) making a substantive change to an industry practice that predates 2018; or (3) making a substantive change to an existing regulatory requirement that predates 2018. This is to avoid including new costs in 2018-2022 that are not attributable to guidance and, therefore, out of scope for this portion of the Pre-Guidance baseline's timeframe. The Coast Guard estimates costs specifically stemming from this rulemaking in the 2023-2032 portion of the Pre-Guidance period of analysis. The overall period of analysis for the Pre-Guidance timeframe is 2018-2032.

Individual Training Plans for Apprentice Pilots

One addition to the Definitions portion of § 401.110 is the creation of a definition for “individual training plan.” Moreover, the creation of paragraph (g) in § 401.211 codifies the existing requirement for individual training plans to be submitted to the Coast Guard for each Apprentice Pilot. The Coast Guard has been receiving individualized plans since 2018 but did not previously specify in the regulatory text that plans must be individualized. Mentor Pilots generate these plans and summarize the training that Apprentice Pilots undergo to ensure that they are gaining experience in all relevant transit areas. This ensures that they are qualified for Full Registration at the end of their training. From 2018 to 2022, the Coast Guard received an average of 5 individual training plans annually, as shown in table 6. The Coast Guard estimates that it took 2 hours to generate and submit these plans during 2018-2022. The loaded wage of Pilot submitters is $73.17, from a base wage of $50.09 and a load factor of 1.46.^[22]

Going forward, the Coast Guard expects to receive six plans annually, one for each of the Apprentice Pilots authorized in the 2023 annual ratemaking (88 FR 12226, Feb. 27, 2023).^[23] Given that the Coast Guard is simply codifying this requirement, these individualized plans will still each take 2 hours to generate and submit from 2023-2032. With six submissions annually, the Coast Guard estimates the annual cost of requiring individual training plans for Apprentice Pilots over 2023-2032 to be $877.99 (6 submissions × 2 hours × $73.17). For the Pre-Guidance period of analysis (2018-2032), we estimate the grand total cost to be $10,015.59, discounted to 7 percent, and $784.04 annualized, as summarized in table 6.

( print page 76333)

Table 6—Cost of Submitting Individual Training Plans for Apprentice Pilots

[Pre-Guidance; 2022 dollars]

Year	Plans	Total Pre-Guidance hours	Wage of submitter	Pre-Guidance baseline cost	7%	3%
	[A]	[B]	[C]	[D = A × B × C]
2018	4	2	$73.17	$585.33	$767.24	$658.79
2019	5	2	73.17	731.66	896.31	799.50
2020	5	2	73.17	731.66	837.68	776.22
2021	3	2	73.17	439.00	469.73	452.17
2022	6	2	73.17	877.99	877.99	877.99
2023	6	2	73.17	877.99	820.55	852.42
2024	6	2	73.17	877.99	766.87	827.59
2025	6	2	73.17	877.99	716.70	803.49
2026	6	2	73.17	877.99	669.82	780.08
2027	6	2	73.17	877.99	626.00	757.36
2028	6	2	73.17	877.99	585.04	735.30
2029	6	2	73.17	877.99	546.77	713.89
2030	6	2	73.17	877.99	511.00	693.09
2031	6	2	73.17	877.99	477.57	672.91
2032	6	2	73.17	877.99	446.33	653.31
Total				12,145.54	10,015.59	11,054.11
Annualized					784.04	798.75
*  Note: Components may not add to the totals due to rounding.

The Coast Guard estimates that it takes 30 minutes (0.5 hours) for the Director's office to review these plans. This estimate remains consistent across 2018-2022 and 2023-2032. With 6 submissions annually, using a loaded wage of $113.95 for a GS-14 in-government worker,^[24] the Coast Guard estimates the annual cost to Government of reviewing individual training plans for Apprentice Pilots over 2023-2032 to be $341.84 (6 submissions × 0.5 hours × $113.95). For the Pre-Guidance period of analysis (2018-2032), we estimate the grand total cost to be $3,899.46, discounted to 7-percent, and $305.26 annualized, as summarized in table 7.

Table 7—Cost to Government of Reviewing Individual Training Plans for Apprentice Pilots

[Pre-Guidance; 2022 dollars]

Year	Plans	Total Pre-Guidance hours	Wage of reviewer	Pre-Guidance baseline cost	7%	3%
	[A]	[B]	[C]	[D = A × B × C]
2018	4	0.5	$113.95	$227.89	$298.72	$256.49
2019	5	0.5	113.95	284.86	348.97	311.28
2020	5	0.5	113.95	284.86	326.14	302.21
2021	3	0.5	113.95	170.92	182.88	176.05
2022	6	0.5	113.95	341.84	341.84	341.84
2023	6	0.5	113.95	341.84	319.47	331.88
2024	6	0.5	113.95	341.84	298.57	322.21
2025	6	0.5	113.95	341.84	279.04	312.83
2026	6	0.5	113.95	341.84	260.79	303.72
2027	6	0.5	113.95	341.84	243.72	294.87
2028	6	0.5	113.95	341.84	227.78	286.28
2029	6	0.5	113.95	341.84	212.88	277.94
2030	6	0.5	113.95	341.84	198.95	269.85
2031	6	0.5	113.95	341.84	185.94	261.99
2032	6	0.5	113.95	341.84	173.77	254.36
Total				4,728.73	3,899.46	4,303.79
Annualized					305.26	407.61
*  Note: Components may not add to the totals due to rounding.

( print page 76334)

Semi-Annual Performance Evaluation Reports for Apprentice Pilots

The creation of paragraph (h) in § 401.211 requires associations to submit Semi-annual Performance Evaluation Reports to the Director for Apprentice Pilots. The Coast Guard assumes that mentor Pilots generate these evaluation reports, which summarize the Apprentice Pilot's training progress twice a year. These reports allow the Director and the associations to make informed decisions on Apprentice Pilot progress to better tailor what training is needed for an Apprentice Pilot to successfully complete training to become a United States Registered Pilot. Based on information from a U.S. Coast Guard subject matter expert (SME), this industry practice began in 2018. The Coast Guard estimates that it takes 6 hours to generate and submit these reports. The loaded wage of Pilot submitters is $73.17, from a base wage of $50.09 and a load factor of 1.46.^[25]

From 2018 to 2022, the Coast Guard received an average of 18 reports annually, which is greater than the 12 reports the Coast Guard expected for 6 Apprentice Pilots, assuming 2 reports submitted annually. Where the Coast Guard initially received more reports than the number of active Apprentice Pilots, some reports were backdated for mariners who had already completed Apprentice training and had become Pilots. To be conservative, the Coast Guard uses the higher average of 18 to estimate ongoing costs. The Coast Guard estimates the annual cost of requiring individual training plans for Apprentice Pilots over 2023-2032 to be $7,901.92 (18 submissions × 6 hours × $73.17).^[26] For the Pre-Guidance period of analysis (2018-2032), we estimate the grand total cost to be $99,875.41, discounted to 7 percent, and $7,818.45 annualized, as summarized in table 8.

Table 8—Cost of Submitting Semi-Annual Performance Reports for Apprentices

[Pre-Guidance; 2022 dollars]

Year	Reports	Total Pre-Guidance hours	Wage of submitter	Pre-Guidance baseline cost	7%	3%
	[A]	[B]	[C]	[D = A × B × C]
2018	20	6	$73.17	$8,779.91	$11,508.67	$9,881.87
2019	18	6	73.17	7,901.92	9,680.19	8,634.64
2020	22	6	73.17	9,657.90	11,057.33	10,246.07
2021	9	6	73.17	3,950.96	4,227.53	4,069.49
2022	18	6	73.17	7,901.92	7,901.92	7,901.92
2023	18	6	73.17	7,901.92	7,384.97	7,671.77
2024	18	6	73.17	7,901.92	6,901.84	7,448.32
2025	18	6	73.17	7,901.92	6,450.32	7,231.38
2026	18	6	73.17	7,901.92	6,028.34	7,020.75
2027	18	6	73.17	7,901.92	5,633.96	6,816.26
2028	18	6	73.17	7,901.92	5,265.38	6,617.73
2029	18	6	73.17	7,901.92	4,920.92	6,424.98
2030	18	6	73.17	7,901.92	4,598.99	6,237.85
2031	18	6	73.17	7,901.92	4,298.12	6,056.16
2032	18	6	73.17	7,901.92	4,016.93	5,879.77
Total				117,211.79	99,875.41	108,138.95
Annualized					7,818.45	7,813.88
*  Note: Components may not add to the totals due to rounding.

The Coast Guard estimates that it takes 20 minutes (0.33 hours) for the Director's office to review these reports, using a loaded wage of $113.95 for a GS-14 in-government worker.^[27] Using the same metric of 18 submissions annually, the Coast Guard estimates the annual cost to Government of reviewing individual training plans for Apprentice Pilots over 2023-2032 to be $683.67. For the Pre-Guidance period of analysis (2018-2032), we estimate the grand total cost to be $8,641.19, discounted to 7 percent, and $1,053.61 annualized, as summarized in table 9.

( print page 76335)

Table 9—Cost to Government of Reviewing Semi-Annual Performance Reports for Apprentices

[Pre-Guidance; 2022 dollars]

Year	Reports	Total Pre-Guidance hours	Wage of reviewer	Pre-Guidance baseline cost	7%	3%
	[A]	[B]	[C]	[D = A × B × C]
2018	20	0.33	$113.95	$759.64	$995.73	$854.98
2019	18	0.33	113.95	683.67	837.53	747.07
2020	22	0.33	113.95	835.60	956.68	886.49
2021	9	0.33	113.95	341.84	365.76	352.09
2022	18	0.33	113.95	683.67	683.67	683.67
2023	18	0.33	113.95	683.67	638.95	663.76
2024	18	0.33	113.95	683.67	597.15	644.43
2025	18	0.33	113.95	683.67	558.08	625.66
2026	18	0.33	113.95	683.67	521.57	607.43
2027	18	0.33	113.95	683.67	487.45	589.74
2028	18	0.33	113.95	683.67	455.56	572.56
2029	18	0.33	113.95	683.67	425.76	555.89
2030	18	0.33	113.95	683.67	397.90	539.70
2031	18	0.33	113.95	683.67	371.87	523.98
2032	18	0.33	113.95	683.67	347.54	508.72
Total				10,141.13	8,641.19	9,356.15
Annualized					1,053.61	676.06
*  Note: Components may not add to the totals due to rounding.

Removing Monthly Availability Reports

This rule removes the requirement in § 401.260 that Pilots and Apprentice Pilots submit monthly availability reports. Often, these availability reports do not communicate meaningful information, because in practice, Pilots are listed as always available if they could be called in. Therefore, the Coast Guard no longer sees a benefit in requiring these reports. Based on information from a Coast Guard SME, these monthly reports have been submitted by industry since the mid-1960's.^[28] To capture the recent burden these reports have had on industry, the Coast Guard has chosen to use data from 2018-2022. From 2018 to 2022, the Coast Guard received an average of 672 monthly availability reports. Each report takes an estimated 2.5 hours to submit. Given that this practice did not begin in 2018 and is not a cost attributable to guidance, the Coast Guard has zeroed out the hours from 2018 to 2022. If the Coast Guard continued to require these reports, we could expect to receive 650 annually, 1 report for each of the 6 Apprentice Pilots, 56 Pilots, and 3 Temporary Registered Pilots for the 10 months between when the locks are opened and closed (650 reports = (6 + 56 + 3) × 10 months). The loaded wage of Pilot submitters is $73.17, from a base wage of $50.09 and a load factor of 1.46.^[29]

Continuing to require these reports would result in an hour burden of 2.5 hours per submission. Entirely removing this regulatory requirement acts as a marginal decrease in burden of 2.5 hours per submission. Since this marginal change in hour burden is based on a change to existing regulatory text, rather than codifying or modifying industry practice stemming from 2018 guidance, our annual Pre-Guidance reduction in hourly burden in 2023-2032 is equal to that of our annual No Baseline hourly burden (2.5 hours). For the Pre-Guidance period of analysis (2018-2032), we estimate the total net cost savings to be $(835,065.99) discounted to 7 percent and $(65,370.68) annualized, as summarized in table 10.

Table 10—Cost of Submitting Monthly Availability Reports

[Pre-Guidance; 2022 dollars]

Year	Reports	Total Pre-Guidance hours	Wage of submitter	Pre-Guidance baseline cost	7%	3%
	[A]	[B]	[C]	[D = A × B × C]
2018	670	* 0	$73.17	$0.00	$0.00	$0.00
2019	620	* 0	73.17	0.00	0.00	0.00
2020	720	* 0	73.17	0.00	0.00	0.00
2021	630	* 0	73.17	0.00	0.00	0.00
2022	720	* 0	73.17	0.00	0.00	0.00
2023	650	2.5	73.17	(118,894.61)	(111,116.46)	(115,431.66)
( print page 76336)
2024	650	2.5	73.17	(118,894.61)	(103,847.16)	(112,069.57)
2025	650	2.5	73.17	(118,894.61)	(97,053.42)	(108,805.41)
2026	650	2.5	73.17	(118,894.61)	(90,704.13)	(105,636.32)
2027	650	2.5	73.17	(118,894.61)	(84,770.21)	(102,559.54)
2028	650	2.5	73.17	(118,894.61)	(79,224.50)	(99,572.36)
2029	650	2.5	73.17	(118,894.61)	(74,041.59)	(96,672.20)
2030	650	2.5	73.17	(118,894.61)	(69,197.75)	(93,856.50)
2031	650	2.5	73.17	(118,894.61)	(64,670.79)	(91,122.82)
2032	650	2.5	73.17	(118,894.61)	(60,439.99)	(88,468.76)
Total				(1,188,946.11)	(835,065.99)	(1,014,195.15)
Annualized					(65,370.68)	(73,283.50)
*  Note: Components may not add to the totals due to rounding. Cited hours with “*” indicate that this practice did not begin with the onset of guidance in 2018. To avoid inappropriately categorizing this as a new cost attributable to 2018 guidance, the Coast Guard has opted to zero out hours in applicable cases.

Disputes

Under § 401.431(b), the Coast Guard changes “in writing” to “official correspondence” and specifies that the letter expressing the dispute must include the vessel name, date of service, and reference number for the invoice/bill, the exact amount of dispute, regulatory citation for dispute, and the requested resolution. Per a Coast Guard SME, disputes have been submitted since the mid-1960's in accordance with § 401.431.^[30] However, the Coast Guard previously received these disputes in varying formats. From 2018 to 2022, the Coast Guard received 6 unique disputes (some including multiple charges). Note that no unique disputes were submitted from 2019 to 2022. According to a Coast Guard SME, the agency expects one trip charge dispute submission per year starting in 2023. The loaded wage of Pilot submitters is $73.17, from a base wage of $50.09 and a load factor of 1.46.^[31]

During 2018-2022, each dispute required 30 minutes to submit. However, given that this practice began prior to 2018 and is, therefore, not a cost attributable to guidance, the Coast Guard has zeroed out the hours from 2018 to 2022. With the changes, the Coast Guard estimates that future submissions will take 1 hour each, an additional 30 minutes per report. Since this marginal change in hour burden is based in a change to existing regulatory text rather than codifying or modifying industry practice stemming from 2018 guidance, our annual Pre-Guidance hourly burden in 2023-2032 is equal to that of our annual No Baseline hourly burden (0.5 hours). For the Pre-Guidance period of analysis (2018-2032), we estimate the grand total cost to be $256.94, discounted to 7-percent, and $20.11 annualized, as summarized in table 11.

Table 11—Cost of Submitting Trip Charge Disputes

[Pre-Guidance; 2022 dollars]

Year	Submissions	Total Pre-Guidance hours	Wage of submitter	Pre-Guidance baseline cost	7%	3%
	[A]	[B]	[C]	[D = A × B × C]
2018	6	* 0	$73.17	0.00	0.00	0.00
2019	0	* 0	73.17	0.00	0.00	0.00
2020	0	* 0	73.17	0.00	0.00	0.00
2021	0	* 0	73.17	0.00	0.00	0.00
2022	0	* 0	73.17	0.00	0.00	0.00
2023	1	0.5	73.17	36.58	34.19	35.52
2024	1	0.5	73.17	36.58	31.95	34.48
2025	1	0.5	73.17	36.58	29.86	33.48
2026	1	0.5	73.17	36.58	27.91	32.50
2027	1	0.5	73.17	36.58	26.08	31.56
2028	1	0.5	73.17	36.58	24.38	30.64
2029	1	0.5	73.17	36.58	22.78	29.75
2030	1	0.5	73.17	36.58	21.29	28.88
( print page 76337)
2031	1	0.5	73.17	36.58	19.90	28.04
2032	1	0.5	73.17	36.58	18.60	27.22
Total				365.83	256.94	312.06
Annualized					20.11	22.55
*  Note: Numbers may not sum due to rounding. Cited hours with “*” emphasize that this practice did not begin with the onset of guidance in 2018. To avoid inappropriately categorizing this as a new cost attributable to 2018 guidance, the Coast Guard has opted to zero out hours in applicable cases.

Submission of Medical Certificates

Medical certificates are already required as part of an application for an MMC under 46 CFR part 10, subpart C, which is an existing requirement to apply to be an Apprentice Pilot as noted in §§ 401.110 and 401.210. The change in text clarifies that the requirement applies to Apprentice Pilots, which was not specified before. This change directly impacts mariners who submit Apprentice Pilot applications to the Director. On average, the Coast Guard receives 15 such applications annually. According to a Coast Guard SME, this practice began in 2018 through informal program guidance. This guidance was issued following a recommendation from the Great Lakes Pilotage Advisory Committee in 2018.

The medical certificate portion of the application takes approximately 18 minutes to draft and submit, as detailed in the Information Collection Request, OMB Control Number 1625-0040, “Applications for Merchant Mariner Credentials and Medical Certificate.” Given this information collection both accounts for all medical certificates that have been received and periodically updated, this increase in medical certificates is already accounted for in 1625-0040. Therefore, this is a regulatory cost but not an information collection cost. The loaded wage of submitters is $73.17, from a base wage of $50.09 and a load factor of 1.46.^[32] For the Pre-Guidance period of analysis (2018-2032), we estimate the grand total cost to be $4,162.92, discounted to 7 percent, and $325.88 annualized, as summarized in table 12.

Table 12—Total Cost of Medical Certificates for Apprentice Pilot Applications

[Pre-Guidance; 2022 dollars]

Year	Submissions	Total Pre-Guidance hours	Wage of submitter	Pre-Guidance baseline cost	7%	3%
	[A]	[B]	[C]	[D = A × B × C]
2018	17	0.3	$73.17	$373.15	$489.12	$419.98
2019	15	0.3	73.17	329.25	403.34	359.78
2020	11	0.3	73.17	241.45	276.43	256.15
2021	15	0.3	73.17	329.25	352.29	339.12
2022	15	0.3	73.17	329.25	329.25	329.25
2023	15	0.3	73.17	329.25	307.71	319.66
2024	15	0.3	73.17	329.25	287.58	310.35
2025	15	0.3	73.17	329.25	268.76	301.31
2026	15	0.3	73.17	329.25	251.18	292.53
2027	15	0.3	73.17	329.25	234.75	284.01
2028	15	0.3	73.17	329.25	219.39	275.74
2029	15	0.3	73.17	329.25	205.04	267.71
2030	15	0.3	73.17	329.25	191.62	259.91
2031	15	0.3	73.17	329.25	179.09	252.34
2032	15	0.3	73.17	329.25	167.37	244.99
Total				4,894.80	4,162.92	4,512.82
Annualized					325.88	326.09
*  Note: Components may not add to the totals due to rounding.

Costs: No Action Baseline

This section outlines regulatory costs relative to the No Action baseline scenario. The No Action analysis period is 2023-2032. Our No Action baseline differs from the Pre-Guidance baseline in its exclusion of any costs that are not directly stemming from this rulemaking. In other words, the No Action baseline ( print page 76338) represents the current state of the world that exists solely under pre-existing regulatory text and prior guidance. This results in many items having non-zero costs in our Pre-Guidance baseline that are no-cost items in the No Action baseline. For example, the Coast Guard began receiving individualized training plans as a byproduct of informal guidance in 2018. While this rulemaking codifies this practice through an addition to 46 CFR 401.110, there is no additional regulatory burden that results from said codification. In other words, all applicable costs across 2018-2032 for individualized training plans can be attributed specifically to the 2018 guidance. Therefore, this is a no-cost provision in our No Action baseline.

The following items had non-zero costs in our Pre-Guidance baseline but are no-cost provisions in the No Action Baseline: (1) Individual training plans for Apprentice Pilots (§§ 401.110 and 401.211(g)); (2) Semi-annual Performance Evaluation Report for Apprentice Pilots (§ 401.211(h)); and (3) Submission of Medical Certificates (§ 402.210(a)). These three line items all began as a byproduct of informal guidance from 2018 and have no alteration in burden stemming from this rulemaking that differs from that guidance. See table 5 (the “No Action Baseline (2023-2032)” column) for more context on each of these items.

The following items have non-zero costs in our No Action Baseline: (1) Removing monthly availability reports (§ 401.260) and (2) Submitting Trip Charge Disputes (§ 401.431(b)). Both items have associated costs or cost savings that stem directly from changes made from this rulemaking and are discussed in detail as follows.

Removing Monthly Availability Reports

This final rule removes the requirement in § 401.260 that Pilots and Apprentice Pilots submit monthly availability reports. Often these availability reports do not communicate meaningful information because, in practice, Pilots are listed as always available if they could be called in. Therefore, the Coast Guard no longer sees a benefit in requiring these reports. Based on information from a Coast Guard SME, these monthly reports have been submitted by industry since the mid-1960's.^[33] If the Coast Guard continued to require these reports, we could expect to receive 650 annually, one report for each of the 6 Apprentice Pilots, 56 Pilots, and 3 Temporary Registered Pilots for the 10 months between when the locks are opened and closed (650 reports = (6 + 56 + 3) × 10 months).

Continuing to require these reports would result in an hour burden of 2.5 hours per submission. By entirely removing this regulatory requirement through this rulemaking, this acts as a marginal decrease in burden of 2.5 hours per submission. The loaded wage of submitters is $73.17, from a base wage of $50.09 and a load factor of 1.46.^[34] For the No Action period of analysis (2023-2032), we estimate the total net cost savings to be $(835,065.99) discounted to 7 percent and $(118,894.61) annualized, as summarized in table 13.

Table 13—Cost of Submitting Monthly Availability Reports

[No Action Baseline; 2022 dollars]

Year	Reports	Total No Action baseline hours	Wage of submitter	No Action baseline cost	7%	3%
	[A]	[B]	[C]	[D = A × B × C]
2023	650	2.5	$73.17	($118,894.61)	($111,116.46)	($115,431.66)
2024	650	2.5	73.17	(118,894.61)	(103,847.16)	(112,069.57)
2025	650	2.5	73.17	(118,894.61)	(97,053.42)	(108,805.41)
2026	650	2.5	73.17	(118,894.61)	(90,704.13)	(105,636.32)
2027	650	2.5	73.17	(118,894.61)	(84,770.21)	(102,559.54)
2028	650	2.5	73.17	(118,894.61)	(79,224.50)	(99,572.36)
2029	650	2.5	73.17	(118,894.61)	(74,041.59)	(96,672.20)
2030	650	2.5	73.17	(118,894.61)	(69,197.75)	(93,856.50)
2031	650	2.5	73.17	(118,894.61)	(64,670.79)	(91,122.82)
2032	650	2.5	73.17	(118,894.61)	(60,439.99)	(88,468.76)
Total				(1,188,946.11)	(835,065.99)	(1,014,195.15)
Annualized					(118,894.61)	(118,894.61)
*  Note: Components may not add to the totals due to rounding.

Submitting Trip Charge Disputes

Under § 401.431(b), with this final rule, the Coast Guard changes “in writing” to “official correspondence” and specifies that the letter expressing the dispute must include the vessel name, date of service, and reference number for the invoice/bill, the exact amount of dispute, regulatory citation for dispute, and the requested resolution. Per a Coast Guard SME, disputes have been submitted since the mid-1960's, in accordance with § 401.431.^[35] However, the Coast Guard previously received these disputes in varying forms. According to a Coast Guard SME, the agency expects one trip ( print page 76339) charge dispute submission per year starting in 2023.

With the changes, the Coast Guard estimates that forthcoming submissions will take 1 hour each. This is an increase in 30 minutes when compared to the Coast Guard's estimate for submission time associated with prior disputes that lack these new changes (30 minutes). The loaded wage of submitters is $73.17, from a base wage of $50.09 and a load factor of 1.46.^[36] For the No Action period of analysis (2023-2032), we estimate the grand total cost to be $256.94, discounted to 7 percent, and $36.58 annualized, as summarized in table 14.

Table 14—Cost of Submitting Trip Charge Disputes

[No Action; 2022 dollars]

Year	Submissions	Total No Action baseline hours	Wage of submitter	No Action baseline cost	7%	3%
	[A]	[B]	[C]	[D = A × B × C]
2023	1	0.5	$73.17	$36.58	$34.19	$35.52
2024	1	0.5	73.17	36.58	31.95	34.48
2025	1	0.5	73.17	36.58	29.86	33.48
2026	1	0.5	73.17	36.58	27.91	32.50
2027	1	0.5	73.17	36.58	26.08	31.56
2028	1	0.5	73.17	36.58	24.38	30.64
2029	1	0.5	73.17	36.58	22.78	29.75
2030	1	0.5	73.17	36.58	21.29	28.88
2031	1	0.5	73.17	36.58	19.90	28.04
2032	1	0.5	73.17	36.58	18.60	27.22
Total				365.83	256.94	312.06
Annualized					36.58	36.58
*  Note: Components may not add to the totals due to rounding.

Summary of Total Net Costs

To foster transparency, the Coast Guard is summarizing total net costs by each baseline: Pre-Guidance and No Action. Table 15 accounts for net private costs to industry and the associations for our Pre-Guidance baseline. For the Pre-Guidance period of analysis (2018-2032), we estimate the net private cost to industry to be ($720,755.13) discounted to 7 percent, and ($56,422.19) annualized, as summarized in table 15.

Table 15—Net Private Costs to Industry

[Pre-Guidance; 2022 dollars]

Year	Individual training plans for apprentice pilots	Semi-annual performance evaluation reports for apprentice pilots	Removing monthly availability reports	Disputes	Submission of medical certificates	Total net private costs	7%	3%
	[A]	[B]	[C]	[D]	[E]	[F] = SUM(A:E)]
2018	$585.33	$8,779.91	$0.00	$0.00	$373.15	$9,738.38	$12,765.03	$10,960.64
2019	731.66	7,901.92	0.00	0.00	329.25	8,962.82	10,979.85	9,793.92
2020	731.66	9,657.90	0.00	0.00	241.45	10,631.01	12,171.44	11,278.44
2021	439.00	3,950.96	0.00	0.00	329.25	4,719.20	5,049.55	4,860.78
2022	877.99	7,901.92	0.00	0.00	329.25	9,109.16	9,109.16	9,109.16
2023	877.99	7,901.92	(118,894.61)	36.58	329.25	(109,748.87)	(102,569.04)	(106,552.30)
2024	877.99	7,901.92	(118,894.61)	36.58	329.25	(109,748.87)	(95,858.91)	(103,448.84)
2025	877.99	7,901.92	(118,894.61)	36.58	329.25	(109,748.87)	(89,587.77)	(100,435.76)
2026	877.99	7,901.92	(118,894.61)	36.58	329.25	(109,748.87)	(83,726.89)	(97,510.45)
2027	877.99	7,901.92	(118,894.61)	36.58	329.25	(109,748.87)	(78,249.43)	(94,670.34)
2028	877.99	7,901.92	(118,894.61)	36.58	329.25	(109,748.87)	(73,130.31)	(91,912.95)
2029	877.99	7,901.92	(118,894.61)	36.58	329.25	(109,748.87)	(68,346.08)	(89,235.88)
2030	877.99	7,901.92	(118,894.61)	36.58	329.25	(109,748.87)	(63,874.84)	(86,636.77)
2031	877.99	7,901.92	(118,894.61)	36.58	329.25	(109,748.87)	(59,696.11)	(84,113.37)
2032	877.99	7,901.92	(118,894.61)	36.58	329.25	(109,748.87)	(55,790.76)	(81,663.47)
Total						(1,054,328.14)	(720,755.13)	(890,177.21)
Annualized							(56,422.19)	(64,322.24)
*  Note: Components may not add to the totals due to rounding.

( print page 76340)

Table 16 accounts for net costs to Government for our Pre-Guidance baseline. For the Pre-Guidance period of analysis (2018-2032), we estimate the net cost to Government to be $12,540.65, discounted to 7 percent, and $981.71 annualized.

Table 16—Net Costs to Government

[Pre-Guidance; 2022 dollars]

Year	Individual training plans for apprentice pilots	Semi-annual performance evaluation reports for apprentice pilots	Total net government cost	7%	3%
	[A]	[B]	[C = A + B]
2018	$227.89	$759.64	$987.53	$1,294.45	$1,111.47
2019	284.86	683.67	968.54	1,186.50	1,058.34
2020	284.86	835.60	1,120.46	1,282.82	1,188.70
2021	170.92	341.84	512.75	548.65	528.14
2022	341.84	683.67	1,025.51	1,025.51	1,025.51
2023	341.84	683.67	1,025.51	958.42	995.64
2024	341.84	683.67	1,025.51	895.72	966.64
2025	341.84	683.67	1,025.51	837.12	938.49
2026	341.84	683.67	1,025.51	782.36	911.15
2027	341.84	683.67	1,025.51	731.17	884.61
2028	341.84	683.67	1,025.51	683.34	858.85
2029	341.84	683.67	1,025.51	638.63	833.83
2030	341.84	683.67	1,025.51	596.85	809.55
2031	341.84	683.67	1,025.51	557.81	785.97
2032	341.84	683.67	1,025.51	521.32	763.07
Total			14,869.87	12,540.65	13,659.95
Annualized				981.71	987.04
*  Note: Components may not add to the totals due to rounding.

By aggregating values from table 15 and table 16, the Coast Guard estimates the total net costs associated with our Pre-Guidance baseline. For the Pre-Guidance period of analysis (2018-2032), we estimate the total net costs to be ($708,214.47), discounted to 7 percent, and ($55,440.48) annualized, as summarized in table 17.

Table 17—Total Net Costs

[Pre-Guidance; 2022 dollars]

Year	Total net private costs	Total net government costs	Total net annual costs	7%	3%
	[A]	[B]	[C = A + B]
2018	$9,738.38	$987.53	$10,725.91	$14,059.48	$12,072.11
2019	8,962.82	968.54	9,931.36	12,166.34	10,852.27
2020	10,631.01	1,120.46	11,751.47	13,454.26	12,467.13
2021	4,719.20	512.75	5,231.96	5,598.19	5,388.91
2022	9,109.16	1,025.51	10,134.66	10,134.66	10,134.66
2023	(109,748.87)	1,025.51	(108,723.36)	(101,610.62)	(105,556.66)
2024	(109,748.87)	1,025.51	(108,723.36)	(94,963.20)	(102,482.20)
2025	(109,748.87)	1,025.51	(108,723.36)	(88,750.65)	(99,497.28)
2026	(109,748.87)	1,025.51	(108,723.36)	(82,944.53)	(96,599.30)
2027	(109,748.87)	1,025.51	(108,723.36)	(77,518.26)	(93,785.73)
2028	(109,748.87)	1,025.51	(108,723.36)	(72,446.97)	(91,054.11)
2029	(109,748.87)	1,025.51	(108,723.36)	(67,707.45)	(88,402.04)
2030	(109,748.87)	1,025.51	(108,723.36)	(63,277.99)	(85,827.23)
2031	(109,748.87)	1,025.51	(108,723.36)	(59,138.31)	(83,327.40)
2032	(109,748.87)	1,025.51	(108,723.36)	(55,269.44)	(80,900.39)
Total			(1,039,458.28)	(708,214.47)	(876,517.26)
Annualized				(55,440.48)	(83,014.78)
*  Note: Components may not add to the totals due to rounding.

Now, we repeat this process, but for costs relative to our No Action baseline. Table 18 accounts for net private costs to industry and the pilot associations relative to our No Action baseline. For the No Action period of analysis (2023-2032), we estimate the net private cost to industry to be ($834,809.05), discounted to 7 percent, and ( print page 76341) ($118,858.03) annualized, as summarized in table 18.

Table 18—Net Private Costs to Industry

[No Action; 2022 dollars]

Year	Removing monthly availability reports	Disputes	Net private cost	7%	3%
	[A]	[B]	[C = A + B]
2023	($118,894.61)	$36.58	($118,858.03)	($111,082.27)	($115,396.14)
2024	(118,894.61)	36.58	(118,858.03)	(103,815.20)	(112,035.09)
2025	(118,894.61)	36.58	(118,858.03)	(97,023.56)	(108,771.93)
2026	(118,894.61)	36.58	(118,858.03)	(90,676.22)	(105,603.82)
2027	(118,894.61)	36.58	(118,858.03)	(84,744.13)	(102,527.98)
2028	(118,894.61)	36.58	(118,858.03)	(79,200.12)	(99,541.73)
2029	(118,894.61)	36.58	(118,858.03)	(74,018.81)	(96,642.45)
2030	(118,894.61)	36.58	(118,858.03)	(69,176.45)	(93,827.62)
2031	(118,894.61)	36.58	(118,858.03)	(64,650.89)	(91,094.78)
2032	(118,894.61)	36.58	(118,858.03)	(60,421.39)	(88,441.54)
Total			(1,188,580.28)	(834,809.05)	(1,013,883.09)
Annualized				(118,858.03)	(118,858.03)
*  Note: Components may not add to the totals due to rounding.

Note that there are no costs to Government relative to the No Action baseline, as costs associated with Government review of both individual training plans and Semi-annual Performance Evaluation Reports stem from 2018 informal guidance. Therefore, for the No Action period of analysis (2023-2032), we estimate the total net cost to be ($834,809.05), discounted to 7 percent, and ($118,858.03) annualized, as summarized in table 19.

Table 19—Total Net Costs

[No Action; 2022 dollars]

Year	Net private costs	Net government costs	Total net annual costs	7%	3%
	[A]	[B]	[C = A+B]
2023	($118,858.03)	$0.00	($118,858.03)	($111,082.27)	($115,396.14)
2024	(118,858.03)	0.00	(118,858.03)	(103,815.20)	(112,035.09)
2025	(118,858.03)	0.00	(118,858.03)	(97,023.56)	(108,771.93)
2026	(118,858.03)	0.00	(118,858.03)	(90,676.22)	(105,603.82)
2027	(118,858.03)	0.00	(118,858.03)	(84,744.13)	(102,527.98)
2028	(118,858.03)	0.00	(118,858.03)	(79,200.12)	(99,541.73)
2029	(118,858.03)	0.00	(118,858.03)	(74,018.81)	(96,642.45)
2030	(118,858.03)	0.00	(118,858.03)	(69,176.45)	(93,827.62)
2031	(118,858.03)	0.00	(118,858.03)	(64,650.89)	(91,094.78)
2032	(118,858.03)	0.00	(118,858.03)	(60,421.39)	(88,441.54)
Total			(1,188,580.28)	(834,809.05)	(1,013,883.09)
Annualized				(118,858.03)	(118,858.03)
*  Note: Components may not add to the totals due to rounding

Table 20 gives a summary of the total net costs by baseline. The figures shown for each baseline are in 2022 dollars and are discounted at 7 percent.

( print page 76342)

Table 20—Summary of Net Costs by Baseline

[2022 dollars]

	Pre-guidance baseline (2018-2032; discounted 7%)	No action baseline (2023-2032; discounted 7%)
Net Private Costs to Industry	Net Costs to Industry: ($720,755.13) Annualized Net Costs to Industry: ($56,422.19)	Net Costs to Industry: ($834,809.05) Annualized Net Costs to Industry: ($118,858.03)
Net Costs to Government	Net Costs to Government: $12,540.65 Annualized Net Costs to Government: $981.71	Net Costs to Government: $0.00 Annualized Net Costs to Government: $0.00
Total Net Costs	Total Net Costs: ($708,214.47) Annualized Net Costs: ($55,440.48)	Total Net Costs: ($834,809.05) Annualized Net Costs: ($118.858.03)
*  Note: Components may not add to the totals due to rounding.