[Federal Register Volume 73, Number 197 (Thursday, October 9, 2008)]
[Rules and Regulations]
[Pages 59530-59537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-23834]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 393

[Docket No. MARAD-2008 0096]
RIN 2133-AB70


America's Marine Highway Program

AGENCY: Maritime Administration, DOT.

ACTION: Interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The purpose of this interim final rule is to solicit 
recommendations for short sea transportation routes to be designated as 
Marine Highway Corridors and to solicit applications from interested 
parties to participate in a short sea transportation Project, as 
required by section 55605(c) of Public Law 110-140, the Energy 
Independence and Security Act of 2007. Section 55601(d) specifically 
states, that ``[t]he Secretary may designate a project to be a short 
sea transportation project if the Secretary determines that the project 
may--offer a waterborne alternative to available landside 
transportation services using documented vessels; and provide 
transportation services for passengers or freight (or both) that may 
reduce congestion on landside infrastructure using documented 
vessels.'' Further, section 55605 defines short sea transportation as 
meaning ``the carriage by vessel of cargo that is contained in 
intermodal cargo containers and loaded by crane on the vessel or loaded 
on the vessel by means of wheeled technology; and that is loaded at a 
port in the United States and unloaded either at another port in the 
United States or at a port in Canada located in the Great Lakes Saint 
Lawrence Seaway System; or loaded at a port in Canada located in the 
Great Lakes Saint Lawrence Seaway System and unloaded at a port in the 
United States.'' Section 55605(c) directs the Secretary of 
Transportation to promulgate interim regulations not later than 90 days 
after the date of enactment of this Act. The Secretary of 
Transportation will delegate authority to the Maritime Administrator to 
administer this program. Final regulations are to be issued no later 
than October 1, 2008. The program established in Section 55605 will be 
titled ``America's Marine Highway Program.'' A final regulation will be 
published following this public comment period. Solicitations from 
applicants desiring Marine Highway Project designation will be 
initiated through notification in the Federal Register at a future 
date.

DATES: 
    The effective date of this interim regulation is November 10, 2008. 
Any further comments are due by February 6, 2009.

ADDRESSES: You may submit comments [identified by DOT Docket Number 
MARAD-2008-0096] by any of the following methods:
     Web Site: http://www.regulations.gov. Follow the 
instructions for submitting comments on the electronic docket site.
     Mail: Docket Management Facility; U.S. Department of 
Transportation, 1200 New Jersey Avenue, SE., Room PL-401, Washington, 
DC 20590-0001.
     Hand Delivery: Room PL-401 of the Department of 
Transportation, 1200 New Jersey Avenue, SE., Washington, DC, between 9 
am and 5 pm, Monday through Friday, except Federal holidays.
     Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting 
comments.
    Instructions: All submissions must include the agency name and 
docket number for this rulemaking. Note that all comments received will 
be posted without change to http://www.regulations.gov including any 
personal information provided. Please

[[Page 59531]]

see the Privacy Act heading under Regulatory Notices.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov at any time or to 
Room PL-401 of the Department of Transportation, 1200 New Jersey 
Avenue, SE., Washington, DC, between 9 am and 5 pm, Monday through 
Friday, except Federal Holidays.

FOR FURTHER INFORMATION CONTACT: Michael Gordon, Office of Intermodal 
System Development, Marine Highways and Passenger Services, at (202) 
366-5468, via e-mail at [email protected], or by writing to the 
Office of Marine Highways and Passenger Services, MAR-520, Suite W21-
315, 1200 New Jersey Avenue, SE., Washington, DC 20590.

SUPPLEMENTARY INFORMATION:

Background

    Congestion is one of the single largest threats to America's 
economic prosperity and way of life. Overall, the Department of 
Transportation estimates that congestion on our roads, bridges, 
railways, and in certain ports costs the United States as much as $200 
billion a year and this figure will continue to grow. In addition to 
significant existing congestion, an increasing growth in trade will 
place even more demands on our capability to move freight and people 
through an already strained transportation network.
    Over the next 15 years, experts project that cargoes moving through 
our ports will nearly double. Federal Highway Administration, ``The 
Freight Story: A National Perspective on Enhancing Freight 
Transportation''. Most of this additional cargo will ultimately move 
along our surface transportation corridors, many of which are already 
at or beyond capacity. Since 92 percent of all domestic freight 
currently moves on road and rail infrastructure, the implications of 
this growth are significant. U.S. Department of Transportation 
``Freight Analysis Framework''.
    The challenge we face is to use all transportation modes available 
to address the looming crisis. America's Marine Highway can be a viable 
alternative transportation mode. Expanding the Marine Highway can be 
cost effective and will require less new infrastructure than surface 
transportation alternatives, represents significant fuel savings, while 
offering a resilient and redundant means of transportation. The Marine 
Highway, consisting of more than 25,000 miles of inland, intracoastal, 
and coastal waterways, already transports about 1 billion tons of 
domestic cargo annually, and has considerable room to grow. U.S. Army 
Corps of Engineers, ``Waterborne Commerce of the United States'' 
(2005). The following is an example of the benefit the Marine Highway 
can offer. An East Coast container-on-barge operation that currently 
runs between Baltimore, MD, and Norfolk, VA, relieves the busy I-95 and 
I-64 corridors of almost 2,000 trucks every week. That is equal to 3 
lanes of bumper-to-bumper trucks eight miles long for about \1/8\ the 
amount of fuel. Transporting freight by water has traditionally been 
used for the movement of bulk commodities such as coal, petroleum, 
grain, and lumber, yet growing freight congestion on certain highway 
Corridors, combined with innovative approaches, could encourage 
shippers to consider marine transportation for container cargo.
    In many cases, the Marine Highway runs parallel to some of the most 
congested highway Corridors in the country. On September 10, 2007, the 
Department of Transportation announced six interstate routes as 
Corridors of the Future: I-95 from Florida to the Canadian border; I-70 
in Missouri, Illinois, Indiana, and Ohio; I-15 in Arizona, Utah, 
Nevada, and California; I-5 in California, Oregon, and Washington, I-10 
from California to Florida, and I-69 from Michigan to Texas. The 
designation of waterways along some of these and other clogged roadways 
and rail routes as Marine Highway Corridors could reduce congestion, 
pollution, and energy usage, increase freight system reliability, and 
improve the life of citizens who live in proximity to the highway.
    The Secretary, in consultation with the EPA, will submit a Report 
to Congress by December 19, 2008. The report will include a description 
of the activities conducted under the program, and any recommendations 
for further legislative or administrative action that the Secretary of 
Transportation considers appropriate.

Program Description

    In this rulemaking, the Department of Transportation is 
establishing interim procedures for the implementation of a new short 
sea transportation program, America's Marine Highway Program. Within 
this program, this rulemaking sets forth procedures for recommendations 
for designation of Marine Highway Corridors, and separate procedures 
for applications for Marine Highway Projects.

Rulemaking Analyses and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

    This rulemaking is not significant under section 3(f) of Executive 
Order 12866, and as a consequence, the Office of Management and Budget 
(OMB) did not review the rule. This rulemaking is also not significant 
under the Regulatory Policies and Procedures of the Department of 
Transportation (44 FR 11034; February 26, 1979). It is also not 
considered a major rule for purposes of Congressional review under 
Public Law 104-121. Designation of Marine Highway Corridors and Marine 
Highway Projects does not have an immediate economic impact. Following 
designation, individual Corridor and Project components that may have 
an economic impact will be determined as they are identified.

Executive Order 13132

    We analyzed this rulemaking in accordance with the principles and 
criteria contained in Executive Order 13132 (``Federalism'') and have 
determined that it does not have sufficient federalism implications to 
warrant the preparation of a federalism summary impact statement. The 
regulations herein have no substantial effects on the States, the 
current Federal-State relationship, or the current distribution of 
power and responsibilities among local officials. Therefore, we did not 
consult with State and local officials because it was not necessary.

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires us to assess the impact 
that regulations will have on small entities. After analysis of this 
proposed rule, the Maritime Administrator certifies that this proposed 
rule will not have a significant economic impact on a substantial 
number of small entities, although we do anticipate that a small number 
of small entities will participate in the program and any financial 
impact is expected to be minimal.

Environmental Assessment

    We have analyzed this proposed rule for purposes of compliance with 
the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321 et 
seq.) and we have concluded that designation of Marine Highway 
Corridors and Marine Highway Projects does not have an immediate 
environmental impact. Following designation, individual Corridor and 
Project components that may have an environmental impact will be 
determined as they are identified.

[[Page 59532]]

This program envisions the use of coastwise vessels to relieve 
congestion on highways, and any overall environmental impact should be 
positive. The Texas Transportation Institute, ``A Modal Comparison of 
Domestic Freight Transportation Effects on the General Public'' 
(December 2007).

Paperwork Reduction Act

    This interim regulation 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 the Maritime Administration's intentions to request approval 
for the public to review this interim regulation.

--Copies of this request may be obtained from the Office of Marine 
Highways and Passenger Services, MAR-520, Suite W21-315, 1200 New 
Jersey Avenue, SE., Washington, DC 20590.
--Title of Collection: America's Marine Highway Program, 46 CFR Part 
393.
--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 seeking to make 
recommendations for designation of Marine Highway Corridors may provide 
those recommendations in the form of comments to this interim final 
rulemaking. Persons seeking nomination of a Project under America's 
Marine Highway Program will be required to file a written application. 
No form or particular format will be required for the application. 
However, information about the applicant and the proposal will be 
necessary for proper analysis of the nominated project.
--Need for and Use of the Information: The information collected will 
be used to revise and publish a final regulation implementing America's 
Marine Highway Program. Without the information the Maritime 
Administration would not benefit from public review of the program.
--Description of Respondents: Individuals, partnerships or coalitions 
seeking designation.
--Annual Responses: Once the Program is implemented, Applications for 
designation as Projects will be solicited 1-2 times per year, depending 
on level of interest in the program. The agency anticipates receiving 
approximately 20 responses per year. Recommendations for future 
designations of Marine Highway Corridors may be provided at any time, 
although it is not anticipated that additional Marine Highway Corridors 
will be designated for several years following implementation of the 
Program.
--Annual Burden: 30 hours.

Unfunded Mandates Reform Act

    This rulemaking 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 this objective of U.S. policy. Department of 
Transportation guidance requires the use of a revised threshold figure 
of $136.1 million, which is the value of $100 million in 2008 after 
adjusting for inflation.

Consultation and Coordination With Indian Tribal Governments

    Executive Order 13175--Consultation and Coordination With Indian 
Tribal Governments, dated November 6, 2000, seeks to establish regular 
and meaningful consultation and collaboration with tribal officials in 
the development of Federal policies that have tribal implications, to 
strengthen the United States government-to-government relationships 
with Indian Tribal Governments, and to reduce the imposition of 
unfunded mandates upon Indian tribes. Designation of Marine Highway 
Corridors and Marine Highway Projects does not have an immediate impact 
on Indian tribes. Following designation, individual Corridor and 
Project components that may have an impact on Indian tribes will be 
determined as they are identified.

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) or you may visit 
http://www.regulations.gov.

List of Subjects in 46 CFR Part 393

    Marine Highway, Short sea transportation, Vessels.

0
Accordingly, the Maritime Administration amends 46 CFR chapter II by 
adding part 393 to read as follows:

PART 393--AMERICA'S MARINE HIGHWAY PROGRAM

Sec.
393.1 Purpose.
393.2 Definitions.
393.3 Marine Highway Corridors.
393.4 Marine Highway Projects.
393.5 Incentives, Impediments and Solutions.
393.6 Research on Marine Highway Transportation.

Appendix to Part 393--Criteria for Initial Assessment of Marine 
Highway Project Applications.

    Authority: Energy Independence and Security Act of 2007, 
Sections 1121, 1122, and 1123 of Public Law 110-140, approved 
December 19, 2007 (121 STAT. 1492).


Sec.  393.1  Purpose.

    (a) This part prescribes interim regulations establishing a short 
sea transportation program as set forth in the Energy Independence and 
Security Act of 2007 (Sections 1121, 1122, and 1123 of Pub. L. 110-140, 
approved December 19, 2007 (121 STAT. 1492)).
    (b) The purpose of America's Marine Highway Program is described in 
Section 1121. Section 1121 states that ``[t]he Secretary shall 
designate short sea transportation routes as extensions of the surface 
transportation system to focus public and private efforts to use the 
waterways to relieve landside congestion along coastal corridors.'' 
America's Marine Highway Program consists of four primary components:
    (1) Marine Highway Corridor Designations: This regulation 
establishes the goals and methods by which specific Marine Highway 
Corridors will be identified and designated by the Secretary of 
Transportation. The purpose of designating Marine Highway Corridors is 
to integrate America's Marine Highway into the surface transportation 
system. The Marine Highway Corridors will serve as extensions of the 
surface transportation system and consist of the

[[Page 59533]]

navigable coastal, inland, and intracoastal waters of the United 
States, to support the movement of passengers and cargo between U.S. 
ports, or between U.S. ports and unloaded either at a port in Canada 
located in the Great Lakes Saint Lawrence Seaway System; or loaded at a 
port in Canada located in the Great Lakes Saint Lawrence Seaway System 
and unloaded at a port in the United States, relieving landside 
congestion. America's Marine Highway Program will encourage the 
development of multi-jurisdictional coalitions and focus public and 
private efforts and investment on shifting freight and passengers from 
congested roads and rail lines to effectively utilize Marine Highway 
Corridors.
    (2) Marine Highway Project Designations: This regulation 
establishes the goals and methods by which specific Marine Highway 
Projects will be identified and designated by the Secretary of 
Transportation. The purpose is to mitigate landside congestion by 
designating projects that, if successfully started, expanded, or 
otherwise enhanced, would provide the greatest benefit to the public in 
terms of congestion relief, improved air quality, reduced energy 
consumption, infrastructure construction and maintenance savings, 
improved safety, and long-term economic viability. Designated Marine 
Highway Projects may receive direct support from the Department of 
Transportation as described in this section.
    (3) Incentives, Impediments and Solutions: This section outlines 
how the Department of Transportation, in partnership with public and 
private entities, will identify potential incentives, seek solutions to 
impediments to encourage utilization of America's Marine Highway and 
incorporate it, including ferries, in State and regional transportation 
planning.
    (4) Research: This section describes the research that the 
Department of Transportation, working with the Environmental Protection 
Agency, will conduct to support America's Marine Highway, within the 
limitations of available resources, and to encourage multi-state 
planning. Research would include environmental and transportation 
impacts (benefits and costs), technology, vessel design, and solutions 
to impediments to the Marine Highway.
    (c) In addition, vessels engaged in Marine Highway operations are 
qualified for Capital Construction Fund (CCF) benefits. This program 
was created to assist owners and operators of U.S.-flag vessels in 
accumulating the capital necessary for the modernization and expansion 
of the U.S. merchant marine by encouraging construction, 
reconstruction, or acquisition of vessels through the deferment of 
Federal income taxes on certain deposits of money placed into a CCF.


Sec.  393.2  Definitions.

    For the purposes of this part:
    Administrator. The Maritime Administrator, U.S. Maritime 
Administration, U.S. DOT, who will be authorized by the Secretary of 
Transportation to administer America's Marine Highway Program.
    Applicant. An entity that applies for designation of a Marine 
Highway Corridor or Project under this regulation.
    Coastwise Shipping Laws. Laws, including the Jones Act, as set 
forth in Chapter 551 of Title 46, United States Code.
    Corridor Sponsor. An entity that recommends a Corridor for 
designation as a Marine Highway. Corridor sponsors must be public 
entities, including but not limited to, Metropolitan Planning 
Organizations, State governments (including Departments of 
Transportation) and port authorities, who may submit recommendations 
for designation as a Marine Highway Corridor.
    Domestic Trade. Trade between points in the United States.
    Lift-on/Lift-off (LO/LO) Vessel. A vessel of which the loading and 
discharging operations are carried out by cranes and derricks.
    Marine Highway Corridor. A short sea transportation route that 
serves as an extension of the surface transportation system to relieve 
landside congestion along the highway corridor. It is one or more 
navigable waterways that, if used to transport freight or passengers, 
would provide measurable benefits to a surface transportation route in 
terms of reduced congestion, energy savings, reduced emissions, 
improved safety, and/or reduced infrastructure costs.
    Marine Highway (or Short Sea Transportation). The carriage by 
vessel of passengers and/or cargo that is loaded at a port in the 
United States and unloaded either at another port in the United States, 
or that is loaded at a port in the United States and unloaded at a port 
in Canada located in the Great Lakes Saint Lawrence Seaway System; or 
loaded at a port in Canada located in the Great Lakes Saint Lawrence 
Seaway System and unloaded at a port in the United States.
    Project Sponsor. Project sponsors must be public entities, 
including but not limited to, Metropolitan Planning Organizations, 
state governments (including State Departments of Transportation) and 
port authorities, who may submit applications for designation as a 
Marine Highway Project.
    Roll-on/Roll-off (RO/RO) Vessel. Any vessel that has ramps allowing 
cargo to be loaded and discharged by means of wheeled vehicles so that 
cranes are not required.
    Secretary. The Secretary of Transportation.
    United States Documented Vessel. A vessel documented under 46 
U.S.C. Chapter 121.


Sec.  393.3  Marine Highway Corridors.

    (a) Summary. The purpose of this section is to designate specific 
routes as Marine Highway Corridors. Corridors will be established by 
the Maritime Administrator. The goal of this designation process is to 
accelerate the development of multi-State and multi-jurisdictional 
Marine Highway Corridors to relieve landside congestion along highway 
and railroad corridors. Designation will encourage public/private 
partnerships, and help focus investment on those Marine Highway 
Corridors that offer the maximum potential public benefit in congestion 
reduction, energy efficiency, emissions reduction and other categories. 
Navigable waterways that parallel Corridors already designated as 
``Corridors of the Future'' under DOT's National Strategy to Reduce 
Congestion will be fast-tracked for designation as Marine Highway 
Corridors.
    (b) Objectives. The primary objectives of the designation of Marine 
Highway Corridors are to:
    (1) Establish Marine Highway Corridors as ``extensions of the 
surface transportation system'' as provided by Section 1121 of the 
Energy Independence and Security Act of 2007.
    (2) Develop multi-jurisdictional coalitions that focus public and 
private efforts to use the waterways to relieve landside congestion 
along freight and passenger Corridors.
    (3) Obtain public benefit by shifting freight and passengers in 
measurable terms from congested highway and railroad routes to Marine 
Highway Corridors. Benefits, while primarily aimed at reducing 
congestion, can also include air quality and emissions improvements, 
reduced energy consumption, improved freight reliability and enhanced 
safety.
    (4) Identify potential savings that could be realized by providing 
an alternative to surface transportation infrastructure construction 
and maintenance.

[[Page 59534]]

    (c) Designation of Marine Corridors. The Department of 
Transportation will solicit recommendations for designation of specific 
routes as Marine Highway Corridors. Recommendations will be accepted 
from Corridor sponsors. Corridor sponsors must be public entities, 
including but not limited to, Metropolitan Planning Organizations, 
state governments (including State Departments of Transportation) and 
port authorities. When responding to specific solicitations for Marine 
Highway Corridors by the Secretary of Transportation, the following 
information will be required:
    (1) Physical Description of Proposed Marine Highway Corridor: The 
recommendation should describe the proposed Marine Highway Corridor, 
and its connection to existing or planned transportation infrastructure 
and intermodal facilities. Include key navigational factors such as 
available draft, channel width, bridge or lock clearance and identify 
if they could limit service.
    (2) Surface Transportation Corridor Served: Provide a summary of 
the surface transportation Corridor that the Marine Highway would 
benefit. Include a description of the Corridor, its primary users, the 
nature, locations and occurrence of congestion, urban areas affected, 
and other geographic or jurisdictional issues that impact its overall 
operation and performance.
    (3) Involved Parties: Provide the organizational structure of 
parties recommending the Corridor designation including business 
affiliations, and private sector stakeholders. Multi-jurisdictional 
coalitions may include State Departments of Transportation, 
Metropolitan Planning Organizations, municipalities and other 
governmental entities that have been engaged and the extent to which 
they support the corridor designation.
    (4) Passengers and Freight: Identify number of likely passengers 
and/or quantity of freight that are candidates for shifting to the 
proposed Marine Highway Corridor. If known, include specific shippers, 
manufacturers, distributors or other entities that could benefit from a 
Marine Highway alternative, and the extent to which these entities have 
been engaged.
    (5) Congestion Reduction: Describe extent to which the proposed 
Corridor could relieve landside congestion in measurable terms. Include 
any known offsetting infrastructure savings (either construction or 
maintenance) that would result from the project.
    (6) Public environmental, energy or safety benefits: The 
recommendation should provide, if known, the savings over status quo in 
fuel, emissions, or safety improvements that could be derived from 
shifting some capacity to the proposed Marine Highway Corridor. It 
should also consider the implications future growth may have on the 
proposal and include any affiliations with environmental advocacy 
groups or community groups that support the Corridor designation.
    (7) Impediments: Describe known or anticipated obstacles to 
shifting capacity to the proposed Marine Highway Corridor. Include any 
strategies, either in place or proposed, to deal with the impediments.
    (d) Action by the Department of Transportation. All Marine Highway 
Corridor designation recommendations will be evaluated based upon the 
preceding criteria. An announcement of waterways designated as Marine 
Highway Corridors will appear in the Federal Register. In certain cases 
the Secretary of Transportation may designate a Marine Highway Corridor 
without receipt of a recommendation. The Department of Transportation 
will coordinate with Corridor sponsors to identify the most appropriate 
actions to support the Corridors. Support could include any of the 
following, as appropriate and within agency resources:
    (1) Promote the Corridor with appropriate governmental, State and 
local transportation planners, private sector entities or other 
decision-makers.
    (2) Coordinate with ports, State Departments of Transportation, 
Metropolitan Planning Organizations, localities, other public agencies 
and the private sector to support the designated corridor. Efforts can 
be aimed at obtaining access to land or terminals, developing landside 
facilities and infrastructure, and working with regional, State or 
local governmental entities to remove barriers to self-supporting 
operations.
    (3) Pursue memorandums of agreement with other federal entities to 
transport federally owned or generated cargo using waterborne 
transportation along the Marine Highway Corridor, when practical or 
available.
    (4) Assist with collection and dissemination of data for the 
designation and delineation of Marine Highway Corridors as available 
resources permit.
    (5) Work with Federal entities and state and local governments to 
include designated Corridors in transportation planning.
    (6) Bring specific impediments to the attention of the Marine 
Highway Advisory Board.
    (7) Conduct research on issues specific to designated Corridors as 
available resources permit.
    (8) Communicate with designated Corridor coalitions to provide 
ongoing support and identify lessons learned and best practices for the 
overall Marine Highway program.
    (9) Collect data and disseminate data for the designation and 
delineation of short sea transportation routes.


Sec.  393.4  Marine Highway Projects.

    (a) Summary. The purpose of this section is to designate specific 
Marine Highway Projects to mitigate landside congestion. The goal is to 
identify Projects that, if successfully started, expanded, or otherwise 
enhanced, would provide the greatest benefit to the public. Public 
benefits to be considered include road and railroad congestion relief 
(particularly in urban areas and along corridors with national 
significance), reduced emissions or energy consumption, infrastructure 
construction and maintenance savings, improved safety, and long-term 
economic viability. Designation can help focus public and private 
investment on pre-identified projects that offer the maximum potential 
public benefit. Designated Marine Highway Projects may receive support 
from the Department of Transportation as described in this section.
    (b) Objectives. The primary objectives of the designation of Marine 
Highway Projects are:
    (1) Reduce landside congestion.
    (2) Identify proposed services that represent the greatest public 
benefit as measured in congestion relief, energy savings, reduced 
emissions and improved safety.
    (3) Focus resources on those projects that offer the greatest 
likelihood of success.
    (4) Identify potential savings by providing an alternative to 
surface transportation infrastructure construction and maintenance.
    (5) Develop best practices for the Marine Highway Program.
    (6) Provide specific examples with performance measures and 
quantifiable outcomes for the Marine Highway.
    (c) Designation of Marine Highway Projects. The Department of 
Transportation will solicit applications for designation as specific 
Marine Highway Projects. Applications will be accepted from a Project 
sponsor. Project sponsors must be public entities, including but not 
limited to, Metropolitan Planning Organizations, state governments 
(including State Departments of Transportation) and port authorities. 
Project sponsors are

[[Page 59535]]

encouraged to develop coalitions and public/private partnerships with 
the common objective of developing the specific Marine Highway Project. 
Potential partners can include vessel owners and operators, third party 
logistics providers, trucking companies, shippers, port authorities, 
state, regional and local transportation planners, or any combination 
of entities working in collaboration under a single application. 
Candidate Projects can be new starts or existing Marine Highway 
operations where expansion or improvements present maximum public 
benefit. Applications must meet the requirements of coastwise shipping 
laws and all applicable federal, state and local laws.
    (d) Action by the Department of Transportation. (1) The Department 
will evaluate and select Projects based on a cost-benefit analysis and 
technical review of the information provided by the applicant. The 
Department will publish, and update periodically, the application 
information required and the factors that will be considered in the 
evaluation. Each factor will be weighed according to its relative cost 
or benefit. Applicants may request that other factors be considered in 
the cost-benefit analyses.
    (2) Projects that support a designated Marine Highway Corridor, 
receive a favorable technical review, and meet other minimum standards 
as defined by the Department, may be nominated by the Maritime 
Administrator for selection by the Secretary.
    (3) Upon designation as a Marine Highway Project, the Department of 
Transportation will coordinate with the Project sponsor to identify the 
most appropriate Departmental actions to support the project. Support 
could include any of the following, as appropriate and within agency 
resources:
    (i) Promote the service with appropriate governmental, regional 
State or local transportation planners, private sector entities or 
other decision makers.
    (ii) Coordinate with ports, State Departments of Transportation, 
Metropolitan Planning Organizations, localities, other public agencies 
and the private sector to support the designated service. Efforts can 
be aimed at identifying resources, obtaining access to land or 
terminals, developing landside facilities and infrastructure, and 
working with regional, State or local governmental entities to remove 
barriers to success.
    (iii) Pursue memorandums of agreement with other federal entities 
to transport federally owned or generated cargo using the services of 
the designated project, when practical or available.
    (iv) In cases where transportation infrastructure is needed, 
Project sponsors may request to be designated on the Secretary of 
Transportation's list of high-priority transportation infrastructure 
projects under Executive Order 13274, ``Environmental Stewardship and 
Transportation Infrastructure Project Review.'' For these projects, 
Executive Order 13274 provides that Federal agencies shall, to the 
maximum extent practicable, expedite their reviews for relevant permits 
or other approvals and take related actions as necessary, consistent 
with available resources and applicable laws.
    (v) Assist with developing individual performance measures as 
described in this rule.
    (vi) Work with Federal entities and State and local governments to 
include designated Projects in transportation planning.
    (vii) Bring specific impediments to the attention of Marine Highway 
Advisory Board.
    (viii) Conduct research on issues specific to designated Projects.
    (ix) Maintain liaison with representatives of designated Projects 
to provide ongoing support and identify lessons learned and best 
practices for other projects and the overall Marine Highway program.
    (e) Application for Designation as a Marine Highway Project. Marine 
Highway Project designation will be based on evaluation of the criteria 
outlined in this rule. When responding to specific solicitations for 
Marine Highway projects by the Department of Transportation, the 
following information will be required:
    (1) Proposed project: The application should describe the overall 
operation; which ports and terminals will be served, number and type of 
vessels, size, quantity and type of cargo and/or passengers, routes, 
frequency, and other relevant information. Additional project 
components applicants should address include the following:
    (i) Identify which, if known, designated Marine Highway Corridors 
will be utilized.
    (ii) Provide the organizational structure of the proposed project, 
including business affiliations, environmental non-profit organizations 
and governmental or private sector stakeholders.
    (iii) Documents affirming commitment or support from entities 
involved in the project.
    (iv) State Departments of Transportation, Metropolitan Planning 
Organizations, municipalities and other governmental entities that have 
been engaged and extent to which they support the service.
    (2) Shippers: Identify shippers that have indicated an interest in 
and level of commitment to the proposed service, or describe the 
specific commodities, market, and shippers the service will attract, 
and the extent to which these entities have been engaged. Applications 
should include the marketing strategy.
    (3) Potential relief to surface transportation congestion: Describe 
extent to which the proposed project will relieve landside congestion 
in measurable terms, such as reductions in vehicle miles traveled. 
Include the landside corridors that stand to benefit from the 
operation, and any known infrastructure savings (either construction or 
maintenance) that would result from the project.
    (4) Environmental, energy or safety benefits: The application 
should address the savings over the current practice in fuel, 
emissions, or safety improvements that would result from the proposed 
operation. Include any affiliations with environmental groups or 
additional benefits the service would offer.
    (5) Finance Plan and Private Sector Participation: Provide 
projected revenues and expenses. Include labor and operating costs, 
fixed and recurring infrastructure costs. Include commitments from 
terminals, shippers, operators and other entities. A cost benefit 
analysis should be provided, if available. Note that prior to final 
designation as a project, a cost benefit analysis will be required, if 
not provided in the original application.
    (6) Impediments: Describe any known or anticipated obstacles to 
either start-up or long-term success of the project. Include any 
strategies, either in place or proposed, to mitigate impediments.
    (7) Proposed Project Timeline: The Application should include a 
proposed project time-line with estimated start dates and key 
milestones. Include the point in the timeline at which the enterprise 
is anticipated to attain self-sufficiency (if applicable).
    (8) Cost and Benefits: Applicants will describe, to the extent 
known, the benefits to be derived from the designation of the project 
in monetary terms, including the items described in number 1 through 7 
above, such as the environmental improvements, reduction in fuel usage, 
reduction in landside congestion, increase in employment, increase in 
taxes paid or other revenues derived therefrom, safety improvements

[[Page 59536]]

including potential saving of human life and property from fewer 
traffic accidents, decrease in time required for delivery of cargo or 
passengers and the costs associated with construction of new 
infrastructure if any, the costs of additional operations or 
maintenance of the project, including any public funds needed for 
support of the project. Upon receipt by the Maritime Administrator, the 
application will be evaluated using weight-based criteria during a 
technical review. The review will assess factors such as project scope, 
impact, public benefit, offsetting costs, cost to the Government (if 
any), the likelihood of long-term self-supporting operations, and its 
relationship with Marine Highway Corridors, once designated (See 46 CFR 
393.3 Marine Highway Corridors). Additional factors may be considered 
during the evaluation process. All factors will be quantified and 
weighted by their relative costs and benefits. Project sponsors will be 
notified in writing by the Maritime Administration if they receive 
designation.
    (9) Evaluation Criteria: To view the criteria which will be used in 
the initial assessment of Project applications, please see the Appendix 
to part 393.
    (10) Performance Measures: Once designated projects enter the 
operational phase (either start of a new service, or expansion of 
existing service), they will be evaluated regularly to determine if the 
project's objectives are being achieved. Overall project performance 
will be in one of three categories--exceeds, meets, or does not meet 
original projected unit cost. Unit cost at time of project designation 
will be compared to the unit cost during the performance evaluation. 
Unit cost will be calculated by dividing Public benefit by Public cost, 
then multiplying it by the Timeliness factor, each of which are 
described below:
    (i) Public benefit: Does the project meet the stated goals in 
shifting specific numbers of vehicles (number of trucks, rail cars or 
automobiles) off the designated landside routes (measured in miles, 
weighted for either urban or rural)? Other public benefits, including 
congestion reduction, energy savings, reduced emissions, and safety 
improvements will be assumed to be a direct derivative of either 
numbers of vehicles shifted, or vehicle/ton miles avoided, unless 
specific factors change (such as a change in vessel fuel or emissions).
    (ii) Public cost: Is the overall cost to the Federal government (if 
any) on track with estimates at the time of designation? The overall 
cost to the Federal government represents the amount of Federal 
investment (either direct funding, loan guarantees or similar 
mechanisms) reduced by the offsetting savings the project represents 
(road/bridge wear and tear avoided, infrastructure construction or 
expansion deferred).
    (iii) Timeliness factor: Is the project on track for the point at 
which the enterprise is projected to attain self-sufficiency? For 
example, if the project was anticipated to attain self-sufficiency 
after 36 months of operation, is it on track at the point of evaluation 
to meet that objective? This can be determined by assessing revenues, 
freight trends, expenses and other factors established in the 
application review process.


Sec.  393.5.  Incentives, Impediments and Solutions.

    (a) Summary. The purpose of this section is to identify short term 
incentives and solutions to impediments in order to encourage use of 
the Marine Highway for freight and passengers.
    (b) Objectives. This section is aimed at increasing the use of the 
Marine Highways through the following primary objectives:
    (1) Encourage the integration of Marine Highways in transportation 
plans at the State, regional and local levels.
    (2) Develop short term incentives aimed at expanding existing or 
starting new Marine Highway operations.
    (3) Identify and seek solutions to impediments to the Marine 
Highway.
    (c) Federal, State, Local, and Regional Transportation Planning. 
The Department of Transportation will coordinate with Federal, state 
and local governments and metropolitan planning organizations to 
develop strategies to encourage the use of America's Marine Highway for 
transportation of passengers and cargo. Activities will include the 
following:
    (1) Work with State Departments of Transportation to assess plans 
and develop strategies, where appropriate, to incorporate Marine 
Highway transportation, including ferries, and other marine 
transportation solutions for regional and interstate transport of 
freight and passengers in their statewide and metropolitan 
transportation plans.
    (2) Facilitating groups of States and multi-State transportation 
entities to determine how Marine Highway transportation can address 
congestion, bottlenecks, and other interstate transportation challenges 
to their mutual benefit.
    (3) Identify other federal agencies that have jurisdiction over the 
Project or which currently provide funding for components of the 
project in order to determine the extent to which those agencies should 
be consulted with and invited to assist in the coordination process.
    (3) Consult with Federal Highway Administration, Federal Motor 
Carrier Safety Administration, Federal Railroad Administration, Federal 
Transit Administration and other entities within DOT, as appropriate to 
evaluate costs and benefits of proposed Marine Highway Corridors and 
Projects.
    (d) Short-Term Incentives. The Department of Transportation will 
develop proposed short-term incentives that would encourage the use, 
initiation, or expansion of Marine Highway services. This will be done 
in consultation with shippers and other participants in transportation 
logistics, and government entities, as appropriate.
    (e) Impediments and Solutions. The Department of Transportation 
will establish a Board in accordance with the Federal Advisory 
Committee Act (FACA) whose role is to identify impediments that hinder 
effective use of the Marine Highway and recommend solutions. The Board 
will meet regularly and report its findings and recommended solutions 
to the Maritime Administrator. Board membership will evolve as 
impediments are identified and the area of focus changes. 
Representation could include Federal Departments and Agencies, State 
Departments of Transportation, Metropolitan Planning Organizations and 
other local public entities and private sector stakeholders. The 
Department of Transportation will take actions, as appropriate, to 
address impediments to the Marine Highway.


Sec.  393.6.  Research on Marine Highway Transportation.

    (a) Summary. The Department of Transportation will work in 
consultation with the Environmental Protection Agency and other 
entities as appropriate, within the limits of available resources, to 
conduct research in support of America's Marine Highway. Research can 
be general in nature, or in direct support of designated Marine Highway 
Corridors and Projects.
    (b) Objectives. The primary objectives of selected research 
Projects are to:
    (1) Identify and quantify environmental and transportation-related 
benefits that can be derived from utilization of the Marine Highway as 
compared to other modes of surface transportation.
    (2) Identify existing or emerging technology, vessel design, and 
other improvements that would reduce

[[Page 59537]]

emissions, increase fuel economy, and lower costs of Marine Highway 
transportation and increase the efficiency of intermodal transfers.

Appendix to Part 393--Criteria for Initial Assessment of Marine Highway 
Project Applications
[GRAPHIC] [TIFF OMITTED] TR09OC08.016


By Order of the Secretary.

    Dated: October 2, 2008.
Leonard Sutter,
Maritime Secretary.
 [FR Doc. E8-23834 Filed 10-8-08; 8:45 am]
BILLING CODE 4910-81-P