[Federal Register Volume 61, Number 91 (Thursday, May 9, 1996)]
[Rules and Regulations]
[Pages 21073-21074]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11464]



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DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

15 CFR Part 981

[Docket No. 951213299-6096-02]
RIN: 0648-AI42


Ocean Thermal Energy Conversion Licensing Program

AGENCY: Office of Ocean and Coastal Resource Management (OCRM), 
National Ocean Service (NOS), National Oceanic and Atmospheric 
Administration (NOAA), Department of Commerce (DOC).

ACTION: Final rule; removal.

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SUMMARY: The National Oceanic and Atmospheric Administration (NOAA) is 
removing Part 981 from Title 15 of the Code of Federal Regulations 
(Part 981). Part 981 implements the Ocean Thermal Energy Conversion 
(OTEC) Licensing Program, which was established under the Ocean Thermal 
Energy Conversion Act of 1980, as amended, (OTEC Act), 42 U.S.C. 9101 
et seq. No applications under Part 981 for licenses of commercial OTEC 
facilities or plantships have yet been received by NOAA, and there has 
been a low level of NOAA activity under the OTEC Act. During this 15 
year period of time, the availability and relatively low price of 
fossil fuels, coupled with the risks to potential investors, has 
limited the interest in the commercial development of OTEC projects. 
Removal of Part 981 at this time will allow NOAA to evaluate the 
appropriateness of these, or any other, regulations at such time as 
interest in the commercial development of OTEC projects occurs.

EFFECTIVE DATE: June 10, 1996.

ADDRESSES: Karl Jugel, Chief, Ocean Minerals and Energy Division, 
Office of Ocean and Coastal Resource Management, National Ocean 
Service, National Oceanic and Atmospheric Administration, 1305 East-
West Highway, 11th Floor, Silver Spring, MD 20910.

FOR FURTHER INFORMATION CONTACT:
James Lawless, Deputy Director, Office of Ocean and Coastal Resource 
Management, at (301) 713-3155.

SUPPLEMENTARY INFORMATION: 

I. Regulatory Review

    The National Oceanic and Atmospheric Administration (NOAA) is 
removing Part 981 of 15 CFR, pursuant to the Regulatory Reform 
Initiative of President Clinton and the Ocean Thermal Energy Conversion 
Act of 1980, as amended.
    In March 1995, President Clinton issued a directive to federal 
agencies regarding their responsibilities under his Regulatory Reform 
Initiative. This initiative is part of the National Performance Review 
and calls for immediate, comprehensive regulatory reform. The President 
directed all agencies to undertake, as part of this initiative, an 
exhaustive review of all their regulations--with an emphasis on 
eliminating or modifying those that are obsolete or otherwise in need 
of reform.
    The Ocean Thermal Energy Conversion Act of 1980, as amended, (OTEC 
Act), 42 U.S.C. 9101 et seq., also requires that NOAA periodically 
review the regulations that apply to the licensing of OTEC facilities 
and plantships. The fundamental purpose of the review is to determine 
if the regulations themselves impose an adverse impact on the 
development and commercialization of OTEC technology.
    On January 30, 1996, NOAA published a notice in the Federal 
Register in which it proposed removing Part 981 and requested all 
interested persons to comment on the proposal (61 FR 2969-2971). 
Comments were in particular invited on whether the OTEC regulations, or 
their removal at this time, impose an adverse impact on the development 
and commercialization of OTEC technology. NOAA received no comments on 
its proposed removal of Part 981.

II. Ocean Thermal Energy Conversion Licensing Program

    The OTEC Act established a licensing and permitting system for the 
development of OTEC as a commercial energy technology. Part 981 
implements the OTEC Licensing Program. The proposed rule preceding this 
rulemaking summarizes the development of Part 981 (61 FR 2969-2971). No 
applications under Part 981 for licenses of commercial OTEC facilities 
or plantships have yet been

[[Page 21074]]

received by NOAA, and there has been a low level of NOAA activity under 
the OTEC Act. During this 15 year period of time, the availability and 
relatively low price of fossil fuels, coupled with the risks to 
potential investors, has limited the interest in the commercial 
development of OTEC projects.
    NOAA is authorized, consistent with the purposes and provisions of 
the OTEC Act, to amend or rescind the OTEC regulations. In particular, 
section 117 of the OTEC Act requires NOAA to review the regulations on 
a periodic basis. NOAA is authorized and directed to revise the 
regulation as necessary and appropriate to ensure that the regulations 
do not impede the development, evolution, and commercialization of OTEC 
technology.
    Given that a commercial OTEC industry has yet to develop, Part 981 
remains unused for the most part. Removal of Part 981 at this time is 
consistent with the purposes and provisions of the OTEC Act in that it 
will allow NOAA to evaluate the suitability of these regulations at 
such time as interest in the commercial development of OTEC projects 
occurs. At such time, NOAA will issue a proposed rule appropriate to 
the then current regulatory needs. Potential Licensees will therefore 
be assured that any future OTEC regulations will be up to date, and 
will continue to provide innovation and flexibility necessary for an 
emerging OTEC industry.
    NOAA is mindful of its responsibility for licensing of commercial 
OTEC facilities and plantships under the OTEC Act, however, and will 
take appropriate steps to review and process an application should one 
be made. For particular inquiries into the licensing of OTEC projects 
in the interim period, NOAA will provide copies of the provisions of 
these OTEC regulations in response to such inquiries. Thus, NOAA will 
provide actual and timely notice of applicable procedures and 
requirements to particular individuals. See 5 U.S.C. 552(a). 
Accordingly, NOAA is removing Part 981, the OTEC regulations, from 
Title 15 of the CFR.

III. Miscellaneous Rulemaking Requirements

Executive Order 12612: Federalism Assessment

    NOAA has concluded that this regulatory action does not have 
federalism implications sufficient to warrant the preparation of a 
Federalism Assessment under Executive Order 12612.

Executive Order 12866: Regulatory Planning and Review

    This regulatory action is not significant for purposes of Executive 
Order 12866.

Regulatory Flexibility Act

    No licenses have been issued for OTEC projects under 15 CFR Part 
981. When commercial interest in OTEC projects occurs, NOAA will issue 
a proposed rule appropriate to the regulatory needs at that time. For 
particular inquiries into the licensing of OTEC projects in the interim 
period, NOAA will provide actual and timely notice of applicable 
procedures and requirements to particular individuals. See 5 U.S.C. 
552(a). For these reasons, the removal of Part 981 is not expected to 
have a significant economic impact on a substantial number of small 
entities, and the Assistant General Counsel for Legislation and 
Regulation of the Department of Commerce has so certified to the Chief 
Counsel for Advocacy of the Small Business Administration. As such, a 
Regulatory Flexibility Analysis was not prepared.

Paperwork Reduction Act

    This regulatory action does not contain an information collection 
requirement subject to review and approval by OMB under the Paperwork 
Reduction Act of 1980, 44 U.S.C. 3500 et seq.

National Environmental Policy Act

    NOAA has concluded that this regulatory action does not constitute 
a major federal action significantly affecting the quality of the human 
environment. No applications for licenses of commercial OTEC facilities 
or plantships have yet been received by NOAA, and Part 981 remains 
unused for the most part. When commercial interest in OTEC projects 
occurs, NOAA will issue a proposed rule appropriate to the regulatory 
needs at that time. For particular inquiries into the licensing of OTEC 
projects in the interim period, NOAA will provide actual and timely 
notice of applicable procedures to particular individuals. See 5 U.S.C. 
552(a). Therefore, and environmental impact statement is not required.

    Authority: Ocean Thermal Energy Conversion Act of 1980, as 
amended, 42 U.S.C. 9101 et seq.

List of Subjects in 15 CFR Part 981

    Administrative practice and procedures, Energy, Environmental 
protection, Intergovernmental relations, Marine resources, Penalties, 
Reporting and recordkeeping requirements.

    Dated: May 2, 1996.
David Evans,
Acting Deputy Assistant Administrator for Ocean Services and Coastal 
Zone Management.

    Accordingly, for the reasons set forth above, Chapter IX of Title 
15 of the Code of Federal Regulations is amended as follows:

PART 981--OCEAN THERMAL ENERGY CONVERSION LICENSING PROGRAM--
[REMOVED]

    1. Under the authority of the Ocean Thermal Energy Conversion Act 
of 1980, Part 981 is removed.

[FR Doc. 96-11464 Filed 5-8-96; 8:45 am]
BILLING CODE 3510-08-M