[Federal Register Volume 75, Number 97 (Thursday, May 20, 2010)]
[Rules and Regulations]
[Pages 28205-28206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-11927]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
46 CFR Part 388
[Docket No. MARAD 2010 0012]
RIN 2133-AB76
Administrative Waivers of the Coastwise Trade Laws: New
Definition for Eligible Vessel
AGENCY: Maritime Administration, Department of Transportation.
ACTION: Final rule.
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SUMMARY: The Maritime Administration (MARAD) is changing the definition
of ``eligible vessel'' to be considered for a waiver of the coastwise
laws to operate as small passenger vessels or uninspected passenger
vessels authorized to carry no more than 12 passengers for hire. The
new definition of ``eligible vessel'' deletes the requirement that the
eligible vessel be five net tons or more. That requirement is not in
the enabling statute and is preventing MARAD from considering waiver
requests from small vessels. In addition, the mailing address of the
agency needs to be updated to reflect the agency's present address.
DATES: This final rule will be effective June 21, 2010.
Docket: For access to the docket to read background documents, go
to http://www.regulations.gov at any time to view docket number 2010-
0012 or to Room PL-401 of the Department of Transportation, 1200 New
Jersey Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: Joann Spittle, Office of Cargo
Preference and Domestic Trade, Maritime Administration, MAR-730, Room
W21-203, 1200 New Jersey Avenue, SE., Washington, DC 20590. Telephone:
202-366-5979 or 800-9US-FLAG; e-mail: [email protected].
SUPPLEMENTARY INFORMATION: Public Law 105-383 authorized the Secretary
of Transportation to grant waivers of the U.S.-build requirement for
the smallest of passenger vessels (those carrying 12 or fewer
passengers) to operate in the coastwise trade. It also authorized the
Secretary of [Homeland Security] to issue a certificate of
documentation with an appropriate endorsement for employment in the
coastwise trade as a small passenger vessel or an uninspected passenger
vessel for eligible vessels authorized to carry no more than 12
passengers for hire if the Secretary of Transportation, after notice
and an opportunity for public comment, determines that the employment
of the vessel in the coastwise trade will not adversely affect: (1)
United States vessel builders; or (2) the coastwise trade business of
any person that employs vessels built in the United States in that
business.
Until now, the term ``eligible vessel'' was understood to mean a
vessel eligible for U.S. Coast Guard documentation, which applies to
vessels of a minimum size of five net tons. However, under 46 U.S.C.
12102(b), a vessel of less than five net tons may engage in the
coastwise trade without documentation, if the vessel otherwise
satisfies the requirements to engage in the trade. An unintended
consequence of the current small passenger waiver regulation is that
the Maritime Administration is unable to grant waivers to owners of
vessels of less than five net tons who want to operate in coastwise
trade.
On January 27, 2010, MARAD published a notice of proposed
rulemaking providing for a public comment period of 60 days. No
comments were received on this proposal. Accordingly, in this final
rule, the Maritime Administration adopts the rule, as proposed. The
rule extends the eligibility of vessels for its Small Vessel Waiver
Program by removing the five net ton minimum requirement.
Vessels eligible for a waiver of the coastwise trade laws will be
limited to foreign built or foreign re-built small passenger vessels
and uninspected passenger vessels as defined by section 2101 of Title
46, United States Code. Additionally, vessels requested for
consideration must be greater than three years old. We will not grant
waivers in instances where such waivers will have an unduly adverse
effect on U.S. vessel builders or U.S. businesses that use U.S. flag
vessels. Under Title V, MARAD also has the authority to revoke
coastwise endorsements under the limited circumstances where a foreign-
built or foreign-rebuilt passenger vessel, previously allowed into
service, is deemed to have obtained such endorsement through fraud. In
addition, the final rule changes the mailing address of the agency
found at 46 CFR 388.3(a)(2) to reflect the agency's present address.
Rulemaking Analysis and Notices
Executive Order 12866 and DOT Regulatory Policies and Procedures
This final rule is not significant under section 3(f) of Executive
Order 12866, and as a consequence, OMB did not review the rule. This
final rule is not significant under the Regulatory Policies and
Procedures of the Department of Transportation (44 FR 11034; February
26, 1979). The costs and benefits associated with this rulemaking are
considered to be so minimal that no further regulatory impact analysis
is necessary.
Executive Order 1313
We analyzed this rulemaking in accordance with the principles and
criteria contained in E.O. 13132 (``Federalism'') and have determined
that it does not have sufficient Federalism implications to warrant the
preparation of a Federalism summary impact statement. This rule has no
substantial
[[Page 28206]]
effects on the States, or on the current Federal-State relationship, or
on the current distribution of power and responsibilities among the
various local officials. Therefore, consultation with State and local
officials was not necessary.
Regulatory Flexibility Act
The Regulatory Flexibility Act requires MARAD to assess the impact
that regulations will have on small entities. After analysis of this
final rule, I certify that this final rule will not have a significant
economic impact on a substantial number of small entities. Although we
expect many applicants for vessel waivers to be small businesses, we do
not believe that the economic impact will be significant. This rule
allows MARAD to waive the U.S.-build and other requirements for
eligible vessels and provides a small economic benefit to applicants.
This regulation will only allow vessels to carry the statutory maximum
of 12 passengers. As a consequence, MARAD estimates that a vessel owner
who receives a waiver may earn a few hundred dollars per year for
localized operations (geographic restrictions apply), such as whale
watching and personalized fishing expeditions. Also, the economic
impact of this rule is limited because it precludes vessel owners from
participating in other economic activities, such as carrying cargo and
commercial fishing.
Environmental Assessment
This rule is not expected to have a significant effect on the human
and natural environment, individually or cumulatively, and is
categorically excluded from further documentation requirements under
the National Environmental Policy Act (NEPA) by Maritime Administrative
Order 600-1, Categorical Exclusion No. 3. In pertinent part,
Categorical Exclusion No. 3 applies to: ``promulgation of rules,
regulations, directives, and amendments thereto which do not require a
regulatory impact analysis under section 3 of Executive Order 12291 or
do not have a potential to cause a significant effect on the
environment.''
Paperwork Reduction Act
The Office of Management and Budget (OMB) has reviewed and approved
the information collection requirements under the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501, et seq.) The OMB approval number is 2133-
0529.
Unfunded Mandates Reform Act
This final rule does not impose unfunded mandates under the
Unfunded Mandates Reform Act of 1995. It does not result in costs of
$141.3 million or more to either State, local, or tribal governments,
in the aggregate, or to the private sector, and is the least burdensome
alternative that achieves the objectives of the rule. Department
guidance requires the use of a revised threshold figure of $141.3
million, which is the value of $100 million in 2008 after adjusting for
inflation.
Consultation and Coordination With Indian Tribal Governments
MARAD believes that regulations evolving from this final rule would
have no significant or unique effect on the communities of Indian
tribal governments when analyzed under the principles and criteria
contained in Executive Order 13084 (Consultation and Coordination with
Indian Tribal Governments). Therefore, the funding and consultation
requirements of this Executive Order would not apply.
Regulation Identifier Number (RIN)
A regulation identifier number (RIN) is assigned to each regulatory
action listed in the Unified Agenda of Federal Regulations. The
Regulatory Information Service Center publishes the Unified Agenda in
April and October of each year. The RIN number contained in the heading
of this document can be used to cross-reference this action with the
Unified Agenda.
Privacy Act
Anyone is able to search the electronic form of all comments
received into any of our dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review DOT's
complete Privacy Act Statement in the Federal Register published on
April 11, 2000 (Volume 65, Number 70; Pages 19477-78).
List of Subjects in 46 CFR Part 388
Adminsitrative practice and procedure, Maritime carriers, Passenger
vessels, Reporting and recordkeeping requirements.
0
Accordingly, the Maritime Administration amends part 388, 46 CFR
chapter II, subchapter J, to read as follows:
PART 388--ADMINISTRATIVE WAIVERS OF THE COASTWISE TRADE LAWS
Authority: 46 App. U.S.C. 1114(b); Pub. L. 105-383, 112 Stat.
3445 (46 U.S.C. 12121): 49 CFR 1.66.
0
1. In Sec. 388.2, revise paragraph (c) to read as follows.
Sec. 388.2 Definitions.
* * * * *
(c) Eligible Vessel means a vessel that--is either a small
passenger vessel or an uninspected passenger vessel that--
(1) Was not built in the United States and is at least 3 years of
age; or
(2) If rebuilt, was rebuilt outside the United States at least 3
years before the certificate of documentation with appropriate
endorsement if granted, would become effective.
* * * * *
0
2. In Sec. 388.3, revise the introductory paragraphs of paragraphs (a)
and (a)(2) to read as follows:
Sec. 388.3 Application and fee.
(a) An owner of a vessel may choose either of two methods to apply
for an administrative waiver of the coastwise trade laws of the United
States for an eligible vessel to carry no more than twelve passengers
for hire.
* * * * *
(2) Alternatively, applicants may send written applications to
Small Passenger Vessel Waiver Applications, Office of Cargo Preference,
MAR-730, 1200 New Jersey Ave., SE., Washington, DC 20590. Written
applications need not be in any particular format, but must be signed,
be accompanied by a check made out to the order of ``Maritime
Administration,'' and contain the following information:
* * * * *
By the order of the Maritime Administrator.
Dated: May 10, 2010.
Christine Gurland,
Secretary, Maritime Administration.
[FR Doc. 2010-11927 Filed 5-19-10; 8:45 am]
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