[Federal Register Volume 64, Number 130 (Thursday, July 8, 1999)]
[Proposed Rules]
[Pages 36831-36835]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17045]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Maritime Administration
46 CFR Part 388
[Docket No. MARAD-1999-5915]
RIN 2133-AB39
Administrative Waivers of the Coastwise Trade Laws for Eligible
Vessels
AGENCY: Maritime Administration, Department of Transportation.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
[[Page 36832]]
SUMMARY: The Maritime Administration (MARAD, or we, our or us) is
seeking public comment on a proposed rule to implement Title V of the
Coast Guard Authorization Act of 1998. The new law authorizes the
Secretary of Transportation to waive the U.S.-build and other
requirements of the Passenger Services Act and Section 27 of the
Merchant Marine Act, 1920, for eligible vessels to be documented with
appropriate endorsement for employment in the coastwise trade as small
passenger vessels or uninspected passenger vessels authorized to carry
no more than 12 passengers for hire. This administrative process will
improve the responsiveness of the Federal Government in meeting the
needs of many vessel-operating small businesses.
DATES: You should submit your comments early enough to ensure that
Docket Management receives them not later than September 7, 1999.
ADDRESSES: You should mention the docket number that appears at the top
of this document. You should submit your written comments to the Docket
Clerk, U.S. DOT Dockets, Room PL-401, Department of Transportation, 400
7th St., SW, Washington, DC 20590. Comments may also be submitted by
electronic means via the Internet at http://dmses.dot.gov/submit/. All
comments will become part of this docket. You may call Docket
Management at (202) 366-9324. You may visit the docket room to inspect
and copy comments at the above address between 10 a.m. and 5 p.m., EDT.
Monday through Friday, except Federal holidays. An electronic version
of this document is available on the World Wide Web at http://
dms.dot.gov.
FOR FURTHER INFORMATION CONTACT: You may call Michael Hokana, Office of
Ports and Domestic Shipping, Maritime Administration, at (202) 366-
0760, or you may write to him at the following address: MAR-832 Room
7201, 400 Seventh Street, SW, Washington, DC 20590.
SUPPLEMENTARY INFORMATION: By this notice of proposed rulemaking, MARAD
seeks public comment on an implementation plan for its Small Passenger
Vessel Waiver Administration Program and related information collection
requirements. Title V of the Coast Guard Authorization Act of 1998
(Public Law 105-383) authorizes the Secretary of Transportation to
grant waivers of certain requirements for the smallest of passenger
vessels (those carrying twelve or fewer passengers) to operate in the
coastwise trade.
Within the Department of Transportation there are two agencies with
responsibilities related to the coastwise trade laws. The Coast Guard
issues the vessel documents and endorsements that authorize vessels to
engage in the coastwise trade. However, the Secretary of Transportation
has delegated to MARAD the authority to process applications for
waivers of the coastwise laws and to determine the effect of waivers of
the coastwise trade laws on United States vessel builders and United
States-built vessel coastwise trade businesses. We are outlining the
procedures to be followed in processing applications for waivers, or
revoking waivers previously granted. Upon grant of a waiver, MARAD will
notify the applicant and the Coast Guard. Thereafter, you may register
the vessel so waived with the Coast Guard under the Coast Guard's
normal procedures, provided the vessel is otherwise eligible.
Vessels eligible for a waiver of the coastwise trade laws will be
limited to foreign-built or foreign rebuilt 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 (3) years old. We will not grant waivers in
instances where such waiver activity will have an unduly harmful impact
on U.S. shipyards or U.S.-flag ship operators. Specifically, and in
order to meet the public comment provisions of Title V, it is our
intention to publish waiver requests for comment in the Federal
Register. After a period of time to evaluate comments and assess the
impact that the proposed waivers will have on the U.S.-flag shipping
and shipbuilding industry, we will issue a determination.
In assessing the adverse effect of grant of a particular waiver, we
may consider sales of vessels of the same type and size and for the
same trade by domestic shipbuilders. As an example, the grant of a
waiver for a motor vessel might not have an adverse effect on sales by
a builder of sailboats. As for adverse effects on coastwise trade
businesses, we may look at the type of service and geographic location
of the applicant and the objector. An intended service providing day
trips for whale watching might not affect a service providing weeklong
trips on a sailing ship. A charter service in Maine might not affect a
charter service in California. Each decision will be made on the facts
of the individual circumstances, including the degree of competition in
a proposed market.
We do not have the authority to waive citizenship requirements for
vessel ownership and documentation. The Coast Guard will ascertain
whether the shipowner is qualified as a citizen to register a vessel.
In addition, the Coast Guard, not MARAD, will determine whether a
particular vessel will be considered a small passenger vessel or an
uninspected passenger vessel. However, we may refuse to process an
application if the vessel is not the type eligible for a waiver.
Prospective applicants for a coastwise trade law waiver may wish to
consult with the Coast Guard prior to initiating the waiver application
process with MARAD.
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,
substantially changes that service and the vessel is employed other
than as a small passenger vessel or an uninspected passenger vessel and
the vessel is having an unduly harmful impact on U.S. vessel builders
or persons who employ U.S.-built vessels in the domestic trade. The
procedure for revocation of a MARAD waiver will include the publication
of a notice in the Federal Register seeking public comments on the
proposed revocation. Secondly, we will determine the extent of the
allegedly detrimental activity and, if an undue impact is found, we
will issue a formal letter of waiver revocation with an appropriate
grace period. This determination will be sent to the Coast Guard for
revocation of the vessel's coastwise endorsement.
MARAD's decisions to grant or deny a waiver and to revoke or not
revoke a waiver will not be final until after time for review has
expired. Applicants and persons who submitted comments in response to a
Federal Register notice may petition the Maritime Administrator to
review a waiver determination, or request the Maritime Administrator
not to review a waiver determination. Relatively short time periods are
provided for this review process.
Comments
How Do I Prepare and Submit Comments?
Your comments must be written and in English. To ensure that your
comments are correctly filed in the Docket, please include the docket
number that appears at the top of this document in your comments. We
encourage you to write your primary comments in a concise fashion.
However, you may attach necessary additional documents to your
[[Page 36833]]
comments. There is no limit on the length of the attachments. Please
submit two copies of your comments, including the attachments, to
Docket Management at the address given above under ADDRESSES. Comments
may also be submitted by electronic means via the Internet at http://
dmses.dot.gov/submit/.
How Can I Be Sure That My Comments Were Received?
If you wish Docket Management to notify you upon its receipt of
your comments, enclose a self-addressed, stamped postcard in the
envelope containing your comments. Upon receiving your comments, Docket
Management will return the postcard by mail.
How Do I Submit Confidential Business Information?
If you wish to submit any information under a claim of
confidentiality, you should submit three copies of your complete
submission, including the information you claim to be confidential
business information, to the Chief Counsel, Maritime Administration,
MAR-220, 400 7th Street, SW, Washington, DC 20590. In addition, you
should submit two copies, from which you have deleted the claimed
confidential business information, to Docket Management at the address
given above under ADDRESSES. When you send comments containing
information claimed to be confidential business information, you should
include a cover letter setting forth with specificity the basis for any
such claim.
Will The Agency Consider Late Comments?
We will consider all comments that Docket Management receives
before the close of business on the comment closing date indicated
above under DATES. To the extent possible, we will also consider
comments that Docket Management receives after that date. If Docket
Management receives a comment too late for us to consider it in
developing a final rule, we will consider that comment as an informal
suggestion for future rulemaking action.
How Can I Read the Comments Submitted by Other People?
You may read the comments received by Docket Management at the
address given above under ADDRESSES. The hours of the Docket Room are
indicated above in the same location. You may also see the comments on
the Internet. To read the comments on the Internet, take the following
steps: Go to the Docket Management System (DMS) Web page of the
Department of Transportation (http://dms.dot.gov/). On that page, click
on ``search.'' On the next page (http://dms.dot.gov/search/), type in
the four-digit docket number shown at the beginning of this document.
Example: If the docket number were ``MARAD-1999-1234,'' you would type
``1234.'' After typing the docket number, click on ``search.'' On the
next page, which contains docket summary information for the docket
that you selected, click on the desired comments. You may download the
comments.
Please note that even after the comment closing date, we will
continue to file relevant information in the Docket, as it becomes
available. Further, some people may submit late comments. Accordingly,
we recommend that you periodically check the Docket for new material.
May I Comment on MARAD?s Use of Plain Language?
This NPRM is one of our first published rulemaking documents under
the plain language directives. We welcome any comments and suggestions
on the use and effectiveness of plain language techniques in this
document or other suggestions on improving our use of plain language.
Rulemaking Analysis and Notices
Executive Order 12866 and DOT Regulatory Policies and Procedures
This proposed rule is not significant according to the Regulatory
Policies and Procedures of the Department of Transportation (44 FR
11034; February 26, 1979). This rule is not an economically significant
regulatory action under section 3(f) of E.O. 12866, because it would
not have an effect on the economy of $100 million or more. We do not
anticipate that a preliminary regulatory evaluation will be prepared.
Federalism
MARAD has analyzed this notice of proposed rulemaking in accordance
with the principles and criteria contained in Executive Order 12612 and
has determined that it would not have sufficient federalism
implications to warrant the preparation of a Federalism Assessment.
Regulatory Flexibility Act
Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), MARAD
must consider whether a notice of proposed rulemaking would have a
significant economic impact on a substantial number of small entities.
Based on a review of this proposed rule, MARAD certifies that this
proposed rule will not have a significant economic impact on a
substantial number of small entities because this regulation does not
impose any significant burdens on small entities, and we do not expect
that a substantial number of small entities will be applicants.
Environmental Assessment
This rule would not significantly affect the environment because
the small number and small size of vessels admitted to U.S. registry
under this waiver program would have little or no effect on the
environment. Accordingly, an Environmental Impact Statement is not
required under the National Environmental Policy Act of 1969.
Paperwork Reduction Act
This proposed rulemaking establishes a new requirement for the
collection of information. The Office of Management and Budget (OMB)
will be requested to review and approve the information collection
requirements under the Paperwork Reduction Act of 1995 (44 U.S.C.
Sec. 3501, et seq.).
In accordance with the Paperwork Reduction Act this document
announces MARAD's intentions to request approval for three years of
information collection to allow processing of applications for waivers.
Copies of this request may be obtained from the Division of Domestic
Shipping at MAR-832 Room 7201, 400 7th Street, SW, Washington, DC
20590.
Title of Collection: Application for Waiver of the Coastwise Trade
Laws for Small Passenger Vessels, 46 CFR Part 388.
Type of Request: New request for information collection.
OMB Control Number: 2133-NEW.
Form Number: None.
Expiration Date of Approval: Three years following approval by the
Office of Management and Budget.
Summary of Collection of Information: Persons desiring waiver of
the coastwise trade laws affecting small passenger vessels will be
required to file a written application. No form or particular format
will be required for the application. However, a minimal amount of
information about the applicant and the vessel proposed for a waiver
will be necessary to properly make the determinations required to grant
a waiver.
Need for and Use of the Information: The information collected will
be used to process applications for waiver of the coastwise trade laws
for small passenger vessels. Without the information it would be
impossible to know who wants a waiver and whether they qualify for a
waiver.
[[Page 36834]]
Description of Respondents: Owners of small passenger vessels.
Annual Responses: Responses will be a one-time requirement of up to
approximately 100 respondents per year.
Annual Burden: 100 hours.
Unfunded Mandates Reform Act
This proposed rule does not impose unfunded mandates under the
Unfunded Mandates Reform Act of 1995. It does not result in costs of
$100 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.
Consultation and Coordination with Indian Tribal Governments
MARAD believes that regulations evolving from this NPRM 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. Nevertheless,
this NPRM specifically requests comments from affected persons,
including Indian tribal governments, as to its potential impact.
Impact on Business Processes and Computer Systems (Year 2000)
Many computers that use two digits to keep track of dates may, on
January 1, 2000, recognize ``double zero'' not as 2000 but as 1900.
This glitch, the Year 2000 problem, could cause computers to stop
running or start generating erroneous data. The Year 2000 problem poses
a threat to the global economy in which Americans live and work. With
the help of the President's Council on Year 2000 Conversion, Federal
agencies are reaching out to increase awareness of the problem and to
offer support. We do not want to impose new requirements that would
mandate business process changes when the resources necessary to
implement those requirements would otherwise be applied to the Year
2000 problem.
This NPRM does not propose business process changes or require
modification to computer systems. Because the NPRM apparently does not
affect organizations' ability to respond to the Year 2000 problem, we
do not intend to delay the effectiveness of the proposed requirements
in the NPRM.
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.
List of Subjects in 46 CFR Part 388
Administrative practice and procedure, Maritime carriers, Passenger
vessels, Reporting and recordkeeping requirements.
Accordingly, the Maritime Administration proposes to add a new Part
388 to 46 CFR chapter II, subchapter J, to read as follows:
PART 388--ADMINISTRATIVE WAIVERS OF THE COASTWISE TRADE LAWS
Sec.
388.1 Purpose.
388.2 Definitions.
388.3 Applications; fees.
388.4 Criteria for grant of a waiver.
388.5 Criteria for revocation of a waiver.
388.6 Process.
388.7 Sunset provision.
Authority: 46 App. U.S.C. 1114(b); Public Law 105-383, 112 Stat.
3445 (46 U.S.C. 12106 note); 49 CFR 1.66.
Sec. 388.1 Purpose.
This part prescribes regulations implementing the provisions of
Title V of Public Law 105-383, 112 Stat. 3445, which grants the
Secretary of Transportation authority to review and approve
applications for waiver of the coastwise trade laws to allow the
carriage of no more than twelve passengers for hire on vessels, which
are three years old or more, built or rebuilt outside the United
States, and grants authority for revocation of those waivers.
Sec. 388.2 Definitions.
For the purposes of this part:
(a) Coastwise Trade Laws include:
(1) The Coastwise Endorsement Provision of the Vessel Documentation
Laws, (46 U.S.C. 12106);
(2) The Passenger Services Act, section 8 of the Act of June 19,
1886 (46 App. U.S.C. 289); and
(3) The Jones Act, section 27 of the Merchant Marine Act, 1920 (46
App. U.S.C. 883).
(b) Eligible Vessel means a vessel of five or more tons 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 certification requested would become effective.
(c) Secretary means the Secretary of Transportation.
(d) The terms, small passenger vessel, uninspected passenger vessel
and passenger for hire have the meaning given such terms by section
2101 of title 46, United States Code.
Sec. 388.3 Applications; fees.
(a) You may apply in writing to the Secretary, Maritime
Administration (MARAD), MAR-120 Room 7210, 400 7th St., SW, Washington,
DC 20590, for an administrative waiver of the coastwise laws of the
United States for an Eligible Vessel to carry no more than twelve
passengers for hire. The application need not be in any particular
format, but must be signed and contain the following information:
(1) Name of vessel and owner for which waiver is requested.
(2) Size, capacity and tonnage of vessel (state whether tonnage is
measured pursuant to 46 U.S.C. 14502, or otherwise, and if otherwise,
how measured).
(3) Intended use for vessel, including geographic region of
intended operation and trade.
(4) Date and place of construction and (if applicable) rebuilding.
(If applicant is unable to determine origins of vessel, foreign
construction will be assumed).
(5) Name, address, and telephone number of applicant and vessel
owner (if different from applicant).
(6) A statement on the impact this waiver will have on other
commercial passenger vessel operators, including a statement describing
the operations of existing operators.
(7) A statement on the impact this waiver will have on U.S.
shipyards.
(b) You must enclose an application fee for each waiver requested,
in the form of a check for $300, made out to the order of ``Treasurer
of the United States.''
Sec. 388.4 Criteria for grant of a waiver.
(a) General criteria. (1) A waiver of the foreign build and/or
foreign rebuild prohibition in the coastwise trade laws will be granted
for an Eligible Vessel if we determine that the employment of the
vessel in the coastwise trade will not unduly adversely affect--
(i) United States vessel builders; or
(ii) The coastwise trade business of any person who employs vessels
built in the United States in that business.
(2) We may evaluate the expected impact of the proposed waiver on
the basis of the information received from
[[Page 36835]]
all sources, including public comment, internal investigation and
analysis, and any other sources of information deemed appropriate.
(b) Impact on U.S. shipbuilders. We may use the following criteria
to determine the effect on U.S. shipbuilders: Whether a potentially
impacted U.S. vessel builder has a history of construction of similar
vessels, or can demonstrate the capability and capacity to build a
similar vessel, for use in the same geographic region of the United
States, as the proposed vessel of the applicant.
(c) Impact on coastwise trade operators. We may use the following
criteria to determine the effect on existing operators of U.S.-built
vessels in coastwise trade:
(1) Whether the proposed vessel of the applicant and the vessel(s)
of an existing operator(s) (or the vessel(s) of an operator that can
demonstrate it has taken definite steps to begin operation):
(i) Are of similar size;
(ii) Are of similar characteristics;
(iii) Would provide similar commercial service; and
(iv) Would operate in the same geographic area.
(2) The number of similar vessels operating or proposed to operate
in the same market with the same or similar itinerary, relative to the
size of the market.
Sec. 388.5 Criteria for revocation of a waiver.
(a) We may revoke a waiver previously granted under this part if we
determine that the employment of the vessel in the coastwise trade has
substantially changed since the issuance of the endorsement, and--
(1) The vessel is employed other than as a small passenger vessel
or an uninspected passenger vessel; or
(2) The employment of the vessel unduly adversely affects--
(i) United States vessel builders; or
(ii) The coastwise trade business of any person who employs vessels
built in the United States.
(b) We may evaluate the effects of the employment of the waived
vessel in the coastwise trade on the basis of the information received
from all sources, including public comment, internal investigation and
analysis, and any other sources of information deemed appropriate.
Sec. 388.6 Process.
(a) Initial process. We will review each application for
completeness as received. We will notify the applicant if additional
information is necessary or if the application does not meet the
initial eligibility requirements for a waiver. All applications that
pass the initial screening will be available for public inspection in
the Department of Transportation Docket Room following publication in
the Federal Register. We will publish a notice of such applications in
the Federal Register. Interested parties will be given an opportunity
to comment on whether introduction of any of the proposed vessels would
adversely affect them. In the absence of duly filed objections to an
application, and in the absence of undue market impact on vessel
operators or vessel builders otherwise discovered by us, we will assume
that there will be no adverse effect. If an objection to an application
is received, additional information may be sought from the objector.
The applicant will be given a sufficient amount of time to respond. The
Director, Office of Ports and Domestic Shipping, will then either make
a decision based on the written submissions and all available
information or may, as a matter of discretion, hold a hearing on the
application. The decision will be communicated to the applicant,
commenters and the Coast Guard. If the Maritime Administration grants a
waiver, the applicant must thereafter contact the Coast Guard to obtain
the necessary documentation for domestic operation, provided the vessel
and its owner otherwise qualify.
(b) Revocation. We may, upon the motion of an interested party, or
upon our own motion, publish a notice in the Federal Register proposing
to revoke a waiver granted under this part. We may request additional
information from any respondent to the notice. The Director, Office of
Ports and Domestic Shipping, will then either make a decision based on
the written submissions and additional publicly available information
or may, as a matter of discretion, refer the request for revocation to
a hearing. The Maritime Administration will communicate its decision to
the applicant and the Coast Guard. If MARAD revokes a waiver, the Coast
Guard shall revoke the vessel's coastwise endorsement.
(c) Review of determinations. (1) The decisions by the Director,
Office of Ports and Domestic Shipping, to grant a waiver, deny a waiver
or revoke a waiver will not be final until after time for discretionary
review by the Maritime Administrator has expired. Applicants and
persons who submitted comments in response to a Federal Register notice
may petition the Maritime Administrator to review a waiver, waiver
denial, or waiver revocation within five (5) days of such
determination. Each petition for review should state the petitioner's
interest and the reasons review is being sought, clearly pointing out
any alleged errors of fact or misapplied points of law. Within three
(3) days of submission of a petition for review, applicants for a
waiver and persons who submitted comments in response to a Federal
Register notice may request the Maritime Administrator not to review a
waiver, waiver denial or waiver revocation.
(2) Such petitions and responses may be sent by facsimile to the
Secretary, Maritime Administration, at (202) 366-9206. To the extent
possible, each petitioner or respondent should send a copy of their
petition or response to other interested parties by facsimile at the
same time the submission is made to MARAD. The Maritime Administrator
will decide whether to take review within two (2) days following the
time for submission of a request that the Maritime Administrator not
take review. If the Maritime Administrator takes review, the
determination by the Director, Office of Ports and Domestic Shipping,
will be stayed until final disposition. If review is not taken, the
determination by the Director, Office of Ports and Domestic Shipping,
will become final two (2) days after the time for submission of
requests that the Maritime Administrator not take review. If the last
day of a time limit falls on a Saturday, Sunday or Federal holiday, the
time is extended to the next business day. In the absence of any
petition for review, the determination by the Director, Office of Ports
and Domestic Shipping, will become final within ten (10) days. The
Secretary, MARAD, may extend any of the time limits for good cause
shown.
Sec. 388.7 Sunset provision.
We will grant no waivers after September 30, 2002, unless the
statutory authority to grant waivers is extended beyond that date. Any
waiver granted prior to September 30, 2002 will continue in effect
until otherwise invalidated or revoked under chapter 121 of title 46,
United States Code.
By order of the Maritime Administrator.
Dated: June 30, 1999.
Joel C. Richard,
Secretary.
[FR Doc. 99-17045 Filed 7-7-99; 8:45 am]
BILLING CODE 4910-81-P