USCG-2001-10163; Notice of Proposed Rulemaking (NPRM).

1. USCG-2001-10163; Notice of Proposed Rulemaking (NPRM). • This presentation summarizes the Office of Boating Safety’s review of comments to the rule, the latest casualty data, and new market research to see if we could develop a workable course of action for the NPRM.

2. Commenters to the NPRM raised several concerns about the lack of specific definitions and standards. • What is a propeller guard??? • Lack of performance standards for required equipment (ring-guards are very different from cage-type guards and may have different levels of effectiveness). • No guidance regarding installation and location of interventions.

3. Commenters raised several concerns specifically related to the propeller guard interventions. • NPRM does not take into account annual inspection/maintenance costs, as well as the potential for the propeller guard to cause collateral damage to the propeller and/or engine gear case should it run aground or collide with debris. Should a prop guard collapse around a propeller, it would most likely render a vessel inoperable and require it to seek a tow. However, if a propeller were simply damaged, the vessel would most likely be able to “limp” home without seeking assistance. • Drag imposed by guards would likely increase fuel consumption and exhaust emissions. • Guards could get fouled by aquatic vegetation • Fouled guards could render the vessel inoperable and create hazardous situations, i.e. navigational obstruction, proximity to dams, collisions with vessels, allisions with fixed objects. • Collapsed guards could ruin lower units of engines.

4. The population estimate of houseboats (~5,000 rentals, ~ 95,000 private), is uncertain. • Not all states identify houseboats in their registration databases • For those that do, these numbers are not necessarily comparable depending on how they define a houseboat.

5. There is no thorough analysis demonstrating the effectiveness of the various types of propeller guards. • Some engine manufacturers have serious concerns based on their exhaustive testing. No engine manufacturer to date has provided detailed data from their testing for independent analysis. • Conversely, some propeller guard manufacturers say propeller guards work based on exhaustive testing, but also haven’t provided detailed data from their testing.

6. Estimated benefits have decreased and, based on the comments, the costs appear to be greater than our proposed estimates • Specifically, for the proposed rule, we analyzed injuries and fatalities over a 10-year period (1990-1999). • Since 1999 (2000-2005), there has been a total of 2 propeller-related fatalities and 10 propeller-related injuries on houseboats.

7. Number of Propeller Related Fatalities and Injuries (Proposed Rule vs. After Proposed Rule) source: BARD

8. According to SBA - the cost burden to small businesses may be substantial • Asserts proposed rule “would not withstand an APA challenge” • BARD statistics do not support the need for rulemaking • The NPRM will affect a substantial number of small entities • The NPRM will have a substantial economic impact on small entities • USCG did not provide a factual basis in determining that the NPRM would not have a significant economic impact on a substantial number of small entities • USCG must prepare an initial regulatory flexibility act analysis.

9. Numerous commenters believed other alternatives, such as education, were better solutions.

10. Examples of Costs • Commenters to the NPRM indicate that a $300 cost estimate for a propeller guard is low. Research indicates that propeller guards currently available on the market cost between $185 and $475. • The estimation of $300 was for one propeller guard. Many houseboats utilize twin outboards or sterndrives which would therefore double the cost of purchasing propeller guards.

11. Examples of Costs, Cont. • The NPRM states that the $300 cost for a propeller guard includes self-installation. • Commenters indicated that installation of a prop guard is likely beyond the skill of most consumers. • Houseboats liveries will incur added costs for installation, even if using their own repair departments. • Research indicates that it will take one to two hours to install one propeller guard, at an estimated labor cost of $65 - $100/hr. • To install certain propeller guards, many vessels must be hauled out of the water, which means that the owner would incur additional costs. In 2000, those charges were $12 - $16 a foot, depending on the length of the boat, for a roundtrip haul. Therefore, for a twin-engine 50’ houseboat it is estimated to cost approximately $1,455 to purchase and install propeller guards: • $300 x 2 prop guard $600 • $12 a foot x 50’ to haul $600 • 3 hrs labor @ $85/hr $255

12. So What Does All Of This Mean? • Per strict application of OMB/DHS guidelines, the cost/benefit analysis (with revised cost figures) does not support rulemaking because potential benefits do not justify the regulation.

13. Where Does That Leave Us? • RBDM requires us to direct resources to projects which can have the biggest effect on the issue • Bruce just updated the subcommittee on boat populations which are higher “risk” than houseboats • There are too many “issues” with this NPRM. It is a better use of resources to start over than to try and “re-work” this NPRM • Office of Boating Safety is going to recommend withdrawal of this proposed rule, and pursue other, more effective, courses of action to address this issue