[Federal Register Volume 74, Number 78 (Friday, April 24, 2009)]
[Proposed Rules]
[Pages 18669-18682]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-9432]
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DEPARTMENT OF HOMELAND SECURITY
Coast Guard
46 CFR Part 401
[Docket No. USCG-2008-1126]
RIN 1625-AB29
2009 Rates for Pilotage on the Great Lakes
AGENCY: Coast Guard, DHS.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Coast Guard is proposing to update the rates for pilotage
on the Great Lakes by 9.41%, effective August 1, 2009, to generate
sufficient revenue to cover allowable expenses, target pilot
compensation, and returns on investment. The proposed update reflects
an August 1, 2009, increase in benchmark contractual wages and
benefits, as well as an increase in the ratio of pilots to ``bridge
hours.'' This rulemaking promotes the Coast Guard strategic goal of
maritime safety.
DATES: Comments and related material must reach the Docket Management
Facility on or before May 26, 2009.
ADDRESSES: You may submit comments identified by Coast Guard docket
number USCG-2008-1126 to the Docket Management Facility at the U.S.
Department of Transportation. To avoid duplication, please use only one
of the following methods:
(1) Federal eRulemaking Portal: http://www.regulations.gov.
(2) Fax: 202-493-2251.
(3) Mail: Docket Management Facility (M-30), U.S. Department of
Transportation, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590-0001.
(4) Hand delivery: Same as mail address above, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays. The telephone
number is 202-366-9329.
FOR FURTHER INFORMATION CONTACT: For questions on this proposed rule,
call Mr. Woo S. Kim, Program Analyst, Great Lakes Pilotage Branch,
Commandant (CG-54122), U.S. Coast Guard, at 202-372-1538, by fax 202-
372-1929, or by e-mail at [email protected]. If you have questions on
viewing or submitting material to the docket, call Renee V. Wright,
Program Manager, Docket Operations, telephone 202-366-9826.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Public Participation and Request for Comments
A. Submitting comments
B. Viewing comments and documents
C. Privacy Act
D. Public Meeting:
II. Abbreviations
III. Background and Purpose
IV. Discussion of the Proposed Rule
V. Regulatory Analyses
A. Regulatory Planning and Review
B. Small Entities
C. Assistance for Small Entities
D. Collection of Information
E. Federalism
F. Unfunded Mandates Reform Act
G. Taking of Private Property
H. Civil Justice Reform
I. Protection of Children
J. Indian Tribal Governments
K. Energy Effects
L. Technical Standards
M. Environment
I. Public Participation and Request for Comments
We encourage you to participate in this rulemaking by submitting
comments and related materials. All comments received will be posted,
without change, to http://www.regulations.gov and will include any
personal information you have provided. We have an agreement with the
Department of Transportation to use the Docket Management Facility.
A. Submitting Comments
If you submit a comment, please include the docket number for this
rulemaking, (USCG-2008-1126), indicate the specific section of this
document to which each comment applies, and give the reason for each
comment. We recommend that you include your name and a mailing address,
an e-mail address, or a phone number in the body of your document so
that we can contact you if we have questions regarding your submission.
You may submit your comments and material by electronic means, mail,
fax, or delivery to the Docket Management Facility at the address under
ADDRESSES; but please submit your comments and material by only one
means. If you submit them by mail or delivery, submit them in an
unbound format, no larger than 8\1/2\ by 11 inches, suitable for
copying and electronic filing. If you submit them by mail and would
like to know that they reached the Facility, please enclose a stamped,
self-addressed postcard or envelope. We will consider all comments and
material received
[[Page 18670]]
during the comment period. We may change this proposed rule in view of
them.
B. Viewing Comments and Documents
To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to http://www.regulations.gov at
any time. Enter the docket number for this rulemaking (USCG-2008-1126)
in the Search box, and click ``Go >>.'' If you do not have access to
the Internet, you may view the docket online by visiting the Docket
Management Facility in Room W12-140 on the ground floor of the
Department of Transportation West Building, 1200 New Jersey Avenue,
SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.
C. Privacy Act
Anyone can 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 a Privacy Act system of
records notice regarding our public dockets in the January 17, 2008
issue of the Federal Register (73 FR 3316).
D. Public Meeting
We do not plan to hold a public meeting. But you may submit a
request for one to the Docket Management Facility at the address under
ADDRESSES explaining why one would be beneficial. If we determine that
one would aid this rulemaking, we will hold one at a time and place
announced by a later notice in the Federal Register.
II. Abbreviations
AMOU American Maritime Officers Union
MISLE Coast Guard Marine Inspection, Safety, and Law Enforcement
NAICS North American Industry Classification System
NEPA National Environmental Policy Act of 1969
NPRM Notice of Proposed Rulemaking
NVMC National Vessel Movement Center
OMB Office of Management and Budget
III. Background and Purpose
This notice of proposed rulemaking (NPRM) is issued pursuant to
Coast Guard regulations in 46 CFR Parts 401-404. Those regulations
implement the Great Lakes Pilotage Act of 1960, 46 U.S.C. Chapter 93,
which requires foreign-flag vessels and U.S.-flag vessels engaged in
foreign trade to use federally registered Great Lakes pilots while
transiting the St. Lawrence Seaway and the Great Lakes system, and
which requires the Secretary of Homeland Security to ``prescribe by
regulation rates and charges for pilotage services, giving
consideration to the public interest and the costs of providing the
services.'' 46 U.S.C. 9303(f).
The U.S. waters of the Great Lakes and the St. Lawrence Seaway are
divided into three pilotage Districts. Pilotage in each District is
provided by an association certified by the Coast Guard Director of
Great Lakes Pilotage to operate a pilotage pool. It is important to
note that, while the Coast Guard sets rates, it does not control the
actual compensation that pilots receive. This is determined by each of
the three District associations, which use different compensation
practices.
District One, consisting of Areas 1 and 2, includes all U.S. waters
of the St. Lawrence River and Lake Ontario. District Two, consisting of
Areas 4 and 5, includes all U.S. waters of Lake Erie, the Detroit
River, Lake St. Clair, and the St. Clair River. District Three,
consisting of Areas 6, 7, and 8, includes all U.S. waters of the St.
Mary's River, Sault Ste. Marie Locks, and Lakes Michigan, Huron, and
Superior. Area 3 is the Welland Canal, which is serviced exclusively by
the Canadian Great Lakes Pilotage Authority and, accordingly, is not
included in the U.S. rate structure. Areas 1, 5, and 7 have been
designated by Presidential Proclamation, pursuant to the Great Lakes
Pilotage Act of 1960, to be waters in which pilots must at all times be
fully engaged in the navigation of vessels in their charge. Areas 2, 4,
6, and 8 have not been so designated because they are open bodies of
water. Under the Great Lakes Pilotage Act of 1960, pilots assigned to
vessels in these areas are only required to ``be on board and available
to direct the navigation of the vessel at the discretion of and subject
to the customary authority of the master.'' 46 U.S.C. 9302(a)(1)(B).
The Coast Guard pilotage regulations require annual reviews of
pilotage rates and the setting of new rates at least once every five
years, or sooner, if annual reviews show a need. 46 CFR 404.1. To
assist in calculating pilotage rates, the pilotage associations are
required to submit to the Coast Guard annual financial statements
prepared by certified public accounting firms. In addition, every fifth
year, in connection with the mandatory rate adjustment, the Coast Guard
contracts with an independent accounting firm to conduct a full audit
of the accounts and records of the pilotage associations and prepare
and submit financial reports relevant to the ratemaking process. In
those years when a full ratemaking is conducted, the Coast Guard
generates the pilotage rates using Appendix A to 46 CFR Part 404.
Between the five-year full ratemaking intervals, the Coast Guard
annually reviews the pilotage rates using Appendix C to Part 404, and
adjusts rates when deemed appropriate. Terms and formulas used in
Appendix A and Appendix C are defined in Appendix B to Part 404.
The last full ratemaking using the Appendix A methodology was
published on April 3, 2006 (71 FR 16501). Rates for the 2007 season
were adjusted based on an Appendix C review and the final rule was
published on September 18, 2007 (72 FR 53158). Rates for the 2008
shipping season were also adjusted based on an Appendix C review
published in an interim rule (73 FR 15092) on March 21, 2008 and a
final rule (74 FR 220) on January 5, 2009. The present rulemaking
proposes rate adjustments for the 2009 shipping season, based once
again on an Appendix C review.
IV. Discussion of the Proposed Rule
The pilotage regulations require that pilotage rates be reviewed
annually. If the annual review shows that pilotage rates are within a
reasonable range of the base target pilot compensation set in the
previous ratemaking, no adjustment to the rates will be initiated.
However, if the annual review indicates that an adjustment is
necessary, then the Coast Guard will establish new pilotage rates
pursuant to 46 CFR 404.10.
A. Proposed Pilotage Rate Changes--Summarized
The Appendix C to 46 CFR 404 ratemaking methodology is intended for
use during the years between Appendix A full ratemaking reviews and
adjustments. This section summarizes the rate changes proposed for
2009, and then discusses in detail how the proposed changes were
calculated under Appendix C. We are proposing an increase of 9.41%
across all Districts over the last pilotage rate adjustment. This
reflects an August 1, 2009, increase in benchmark contractual wages and
benefits, as well as an increase in the ratio of pilots to ``bridge
hours,'' which are the number of hours a pilot is aboard a vessel
providing pilotage service. Actual rate increases vary by Area, and are
summarized in Table 1.
[[Page 18671]]
Table 1--2009 Area Rate Changes
------------------------------------------------------------------------
Then the proposed
percentage
increases over
If pilotage service is required in: the current rate
is:
------------------------------------------------------------------------
Area 1 (Designated waters).......................... 3.89
Area 2 (Undesignated waters)........................ 4.44
Area 4 (Undesignated waters)........................ 4.54
Area 5 (Designated waters).......................... 4.12
Area 6 (Undesignated waters)........................ 12.14
Area 7 (Designated waters).......................... 23.07
Area 8 (Undesignated waters)........................ 2.18
Overall Rate Change (percentage change in overall 9.41
prospective unit costs/base unit costs; see Table
18).................................................
------------------------------------------------------------------------
Rates for cancellation, delay, or interruption in rendering
services (46 CFR 401.420), and basic rates and charges for carrying a
U.S. pilot beyond the normal change point, or for boarding at other
than the normal boarding point (46 CFR 401.428), have been increased by
9.41% in all Areas.
B. Calculating the Rate Adjustment
The Appendix C ratemaking calculation involves eight steps:
Step 1: Calculate the total economic costs for the base period
(i.e., pilot compensation expense plus all other recognized expenses
plus the return element) and divide by the total bridge hours used in
setting the base period rates;
Step 2: Calculate the ``expense multiplier,'' the ratio of other
expenses and the return element to pilot compensation for the base
period;
Step 3: Calculate an annual ``projection of target pilot
compensation'' using the same procedures found in Step 2 of Appendix A;
Step 4: Increase the projected pilot compensation in Step 3 by the
expense multiplier in Step 2;
Step 5: Adjust the result in Step 4, as required, for inflation or
deflation;
Step 6: Divide the result in Step 5 by projected bridge hours to
determine total unit costs;
Step 7: Divide prospective unit costs in Step 6 by the base period
unit costs in Step 1; and
Step 8: Adjust the base period rates by the percentage changes in
unit cost in Step 7.
The base data used to calculate each of the eight steps comes from
the 2008 Appendix C review. The Coast Guard also used the most recent
union contracts between the American Maritime Officers Union (AMOU) and
vessel owners and operators on the Great Lakes to determine target
pilot compensation. Bridge hour projections for the 2009 season have
been obtained from historical data, pilots, and industry. All documents
and records used in this rate calculation have been placed in the
public docket for this rulemaking and are available for review at the
addresses listed under ADDRESSES.
Some values may not total exactly due to format rounding for
presentation in charts and explanations in this section. The rounding
does not affect the integrity or truncate the real value of all
calculations in the ratemaking methodology described below.
Step 1: Calculate the total economic cost for the base period. In
this step, for each Area, we divide total economic costs for the base
period by the total bridge hours used in setting the base period rates,
to yield the base cost per bridge hour. Total base period economic
costs include pilot compensation expenses, plus all other recognized
expenses, plus the return on investment element set during the last
Appendix A review (2006). The calculations providing the total base
period economic costs for each Area are summarized in Table 16 of the
2008 final rule (74 FR 220; Jan. 5, 2009). Total bridge hours use in
setting the base period rates were calculated in Table 13 of the 2008
final rule. Tables 2 through 4 summarize the Step 1 calculations:
Table 2--Total Economic Cost for Base Period, District One
----------------------------------------------------------------------------------------------------------------
Area 1 St. Area 2 Lake Total District
Lawrence River Ontario One
----------------------------------------------------------------------------------------------------------------
Total base period economic costs................................ $2,078,551 $1,474,806 $3,553,357
Base bridge hours............................................... / 5,661 / 5,650 / 11,311
Base cost per bridge hour....................................... = $367.17 = $261.03 = $314.15
----------------------------------------------------------------------------------------------------------------
Table 3--Total Economic Cost for Base Period, District Two
----------------------------------------------------------------------------------------------------------------
Area 5
Area 4 Lake Southeast Total District
Erie Shoal to Port Two
Huron, MI
----------------------------------------------------------------------------------------------------------------
Total base period economic costs................................ $1,251,203 $2,334,169 $3,585,372
Base bridge hours............................................... / 7,320 / 5,097 / 12,417
Base cost per bridge hour....................................... = $170.93 = $457.95 = $288.75
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[[Page 18672]]
Table 4--Total Economic Cost for Base Period, District Three
----------------------------------------------------------------------------------------------------------------
Area 6 Lakes
Huron and Area 7 St. Area 8 Lake Total District
Michigan Mary's River Superior Three
----------------------------------------------------------------------------------------------------------------
Total base period economic costs................ $2,884,724 $1,427,515 $1,944,032 $6,256,273
Base bridge hours............................... / 18,000 / 3,863 / 11,390 / 33,253
Base cost per bridge hour....................... = $160.26 = $369.54 = $170.68 = $188.14
----------------------------------------------------------------------------------------------------------------
Step 2. Calculate the expense multiplier. In this step, for each
Area, we calculate an expense multiplier by dividing the base operating
expense, shown in Table 16, Column B of the 2008 final rule, by base
pilot compensation, shown in Table 16, Column C of the 2008 final rule.
Tables 5 through 7 show the Step 2 calculations.
Table 5--Expense Multiplier, District One
----------------------------------------------------------------------------------------------------------------
Area 1 St. Area 2b Lake Total District
Lawrence River Ontario One
----------------------------------------------------------------------------------------------------------------
Base operating expense.......................................... $516,138 $529,046 $1,045,185
Base target pilot compensation.................................. / $1,562,413 / $945,760 / $2,508,173
Expense multiplier.............................................. = .33035 = .55939 = .41671
----------------------------------------------------------------------------------------------------------------
Table 6--Expense Multiplier, District Two
----------------------------------------------------------------------------------------------------------------
Area 5
Area 4 Lake Southeast Total District
Erie Shoal to Port Two
Huron, MI
----------------------------------------------------------------------------------------------------------------
Base operating expense.......................................... $494,595 $771,756 $1,266,351
Base target pilot compensation.................................. / $756,608 / $1,562,413 / $2,319,021
Expense multiplier.............................................. = .65370 = .49395 = .54607
----------------------------------------------------------------------------------------------------------------
Table 7--Expense Multiplier, District Three
----------------------------------------------------------------------------------------------------------------
Area 6 Lakes
Huron and Area 7 St. Area 8 Lake Total District
Michigan Mary's River Superior Three
----------------------------------------------------------------------------------------------------------------
Base operating expense.......................... $993,207 $384,201 $619,968 $1,997,375
Base target pilot compensation.................. / $1,891,520 / $1,041,609 / $1,324,064 / $4,257,193
Expense multiplier.............................. = .52508 = .36885 = .46823 = .46918
----------------------------------------------------------------------------------------------------------------
Step 3. Calculate annual projection of target pilot compensation.
In this step, we determine the new target rate of compensation and the
new number of pilots needed in each pilotage Area, to determine the new
target pilot compensation for each Area.
(a) Determine new target rate of compensation. Target pilot
compensation is based on the average annual compensation of first mates
and masters on U.S. Great Lakes vessels. Compensation includes wages
and benefits. For pilots in undesignated waters, we approximate the
first mates' compensation and, in designated waters, we approximate the
master's compensation (first mates' wages multiplied by 150% plus
benefits). To determine first mates' and masters' average annual
compensation, we use data from the most recent AMOU contracts with the
U.S. companies engaged in Great Lakes shipping. Where different AMOU
agreements apply to different companies, we apportion the compensation
provided by each agreement according to the percentage of tonnage
represented by companies under each agreement.
On August 16, 2007, the Coast Guard received the two most recent
AMOU contracts. ``Agreement A'' covers vessels operated by American
Steamship Co. and Inland Lakes Management, Inc. Inland Lakes Management
operations continue to be covered by Agreement A, despite that
company's 2008 acquisition by Mittal Steel USA, Inc. ``Agreement B''
covers vessels operated by Key Lakes, Inc., and all other vessels
operated by Mittal Steel.
Both Agreement A and Agreement B provide for a 3% wage increase
effective August 1, 2009. Under Agreement A, the daily wage rate will
be increased from $255.28 to $262.73. Under Agreement B, the daily wage
rate will be increased from $314.42 to $323.86.
To calculate monthly wages, we apply Agreement A and Agreement B
monthly multipliers of 54.5 and 49.5, respectively, to the daily rate.
Agreement A's 54.5 multiplier represents 30.5 average working days,
15.5 vacation days, 4 days for four weekends, 3 bonus days, and 1.5
holidays. Agreement B's 49.5 multiplier represents 30.5 average working
days, 16 vacation days, and 3 bonus days.
To calculate average annual compensation, we multiply monthly
figures by 9 months, the length of the Great Lakes shipping season.
Table 8 shows new wage calculations based on Agreements A and B
effective August 1, 2009.
[[Page 18673]]
Table 8--Wages
------------------------------------------------------------------------
Pilots on
Pilots on designated
Monthly component undesignated waters
waters (undesignated
x 150%)
------------------------------------------------------------------------
AGREEMENT A: $262.73 daily rate x 54.5 $14,319 $21,478
days...................................
AGREEMENT A:
Monthly total x 9 months = total 128,870 193,305
wages..............................
AGREEMENT B:
323.86 daily rate x 49.5 days....... 16,031 24,046
AGREEMENT B:
Monthly total x 9 months = total 144,278 216,417
wages..............................
------------------------------------------------------------------------
Both Agreements A and B include a health benefits contribution rate
of $80.69 effective August 1, 2009. Agreement A includes a pension plan
contribution rate of $33.35 per man-day. Agreement B includes a pension
plan contribution rate of $43.55 per man-day. Both Agreements A and B
provide a 401K employer matching rate, 5% of the wage rate. Neither
Agreement A nor Agreement B includes a clerical contribution that
appeared in earlier contracts. Per the AMOU, the multiplier used to
calculate monthly benefits is 45.5 days.
Table 9 shows new benefit calculations based on Agreements A and B,
effective August 1, 2009.
Table 9--Benefits
------------------------------------------------------------------------
Pilots on Pilots on
Monthly component undesignated designated
waters waters
------------------------------------------------------------------------
AGREEMENT A:
Employer contribution, 401(K) plan $715.95 $1,073.92
(Monthly Wages x 5%)...............
Pension = 33.35 x 45.5 days......... 1,517.43 1,517.43
Health = 80.69 x 45.5 days.......... 3,671.40 3,671.40
AGREEMENT B:
Employer contribution, 401(K) plan 801.54 1,202.32
(Monthly Wages x 5%)...............
Pension = 43.55 x 45.5 days......... 1,981.53 1,981.53
Health = 80.69 x 45.5 days.......... 3,671.40 3,671.40
AGREEMENT A:
Monthly total benefits.............. = 5,904.77 = 6,262.74
AGREEMENT A:
Monthly total benefits x 9 months... = 53,143 = 56,365
AGREEMENT B:
Monthly total benefits.............. = 6,454.46 = 6,855.24
AGREEMENT B:
Monthly total benefits x 9 months... = 58,090 = 61,697
------------------------------------------------------------------------
Table 10 totals the wages and benefits under each agreement.
Table 10--Total Wages and Benefits
------------------------------------------------------------------------
Pilots on Pilots on
undesignated designated
waters waters
------------------------------------------------------------------------
AGREEMENT A: Wages.................... $128,870 $193,305
AGREEMENT A: Benefits................. + 53,143 + 56,365
---------------------------------
AGREEMENT A: Total................ = 182,013 = 249,670
AGREEMENT B: Wages.................... 144,278 216,417
AGREEMENT B: Benefits................. + 58,090 + 61,697
---------------------------------
AGREEMENT B: Total................ = 202,368 = 278,114
------------------------------------------------------------------------
Table 11 shows that approximately one third of U.S. Great Lakes
shipping deadweight tonnage operates under Agreement A, with the
remaining two thirds operating under Agreement B.
[[Page 18674]]
Table 11--Deadweight Tonnage, Agreement A and Agreement B
------------------------------------------------------------------------
Company Agreement A Agreement B
------------------------------------------------------------------------
American Steamship Company.............. .............. 664,215
Mittal Steel USA, Inc. (including Inland 12,656 96,544
Lakes Management, Inc., vessels
acquired by Mittal and continuing to
operate under Agreement A).............
Key Lakes, Inc.......................... 361,385
-------------------------------
Total tonnage, each agreement....... 374,041 760,759
------------------------------------------------------------------------
Percent tonnage, each agreement. 374,041 / 760,759 /
1,134,800 = 1,134,800 =
32.9600% 67.0400%
------------------------------------------------------------------------
Table 12 applies the percentage of tonnage represented by each
agreement to the wages and benefits provided by each agreement, to
determine the projected target rate of compensation on a tonnage-
weighted basis.
Table 12--Projected Target Rate of Compensation, Weighted by Agreement
----------------------------------------------------------------------------------------------------------------
Undesignated waters Designated waters
----------------------------------------------------------------------------------------------------------------
AGREEMENT A:
Total wages and benefits x percent tonnage.................... $182,013 x 32.96% $249,670 x 32.96%
= $59,993 = $82,294
AGREEMENT B:
Total wages and benefits x percent tonnage.................... $202,368 x 67.04% $278,114 x 67.04%
= $135,666 = $186,445
-------------------------------------------------
Total weighted average wages and benefits = projected $59,993 + $135,666 $82,294 + $186,445
target rate of compensation.............................. = $195,659 = $268,738
----------------------------------------------------------------------------------------------------------------
(b) Determine number of pilots needed. Subject to adjustment by the
Coast Guard Director of Great Lakes Pilotage to ensure uninterrupted
service, we determine the number of pilots needed in each Area by
dividing each Area's projected bridge hours, either by 1,000
(designated waters) or by 1,800 (undesignated waters).
Bridge hours are the number of hours a pilot is aboard a vessel
providing pilotage service. Projected bridge hours are based on the
vessel traffic that pilots are expected to serve. Based on historical
data and information provided by pilots and industry, the Coast Guard
projects that vessel traffic in Districts 1 and 2, for the 2009
navigation season, will remain at the same level as in 2007. In
District 3, the actual bridge hours for Areas 6 and 7 were down by more
than 17% and 6%, respectively, when compared to the projected bridge
hours in 2007. Consequently, District 3 has recommended, and we have
agreed, to reduce the projected 2009 Area 6 and Area 7 bridge hours by
10% from 2007. Consistent with this decrease in projected bridge hours,
we are also reducing the number of pilots in Area 6 by two. We are
projecting the same number of bridge hours for 2009 in Area 8 as we did
in 2007.
Table 13 shows the projected bridge hours needed for each Area, and
the total number of pilots needed after dividing those figures either
by 1,000 or 1,800 and rounding up to the next whole pilot:
Table 13--Number of Pilots Needed
----------------------------------------------------------------------------------------------------------------
Divided by 1,000
(designated
Pilotage area Projected 2009 waters) or 1,800 Pilots needed
bridge hours (undesignated (total = 40)
waters)
----------------------------------------------------------------------------------------------------------------
Area 1.................................................... 5,661 1,000 6
Area 2.................................................... 5,650 1,800 * 5
Area 4.................................................... 7,320 1,800 4
Area 5.................................................... 5,097 1,000 6
Area 6.................................................... 13,406 1,800 8
Area 7.................................................... 3,259 1,000 4
Area 8.................................................... 11,630 1,800 7
----------------------------------------------------------------------------------------------------------------
* As indicated in the 2008 Final Rule, the Director has exercised his discretion to maintain 5 pilots in Area 2,
to ensure facilitation of traffic.
(c) Determine the projected target pilot compensation for each
Area. The projection of new total target pilot compensation is
determined separately for each pilotage Area by multiplying the number
of pilots needed in each Area (see Table 13) by the projected target
rate of compensation (see Table 12) for pilots working in that Area.
Table 14 shows this calculation.
[[Page 18675]]
Table 14--Projected Target Pilot Compensation
----------------------------------------------------------------------------------------------------------------
Multiplied by Projected target
Pilotage area Pilots needed target rate of pilot
(total = 40) compensation compensation
----------------------------------------------------------------------------------------------------------------
Area 1................................................. 6 x $268,738 $1,612,431
Area 2................................................. 5 x 195,659 978,294
--------------------------------------------------------
Total, District One................................ 11 ................. 2,590,725
----------------------------------------------------------------------------------------------------------------
Area 4................................................. 4 x 195,659 782,635
Area 5................................................. 6 x 268,738 1,612,431
--------------------------------------------------------
Total, District Two................................ 10 ................. 2,395,066
----------------------------------------------------------------------------------------------------------------
Area 6................................................. 8 x 195,659 1,565,271
Area 7................................................. 4 x 268,738 1,074,954
Area 8................................................. 7 x 195,659 1,369,612
--------------------------------------------------------
Total, District Three.............................. 19 ................. 4,009,836
----------------------------------------------------------------------------------------------------------------
Step 4: Increase the projected pilot compensation in Step 3 by the
expense multiplier in Step 2. This step yields a projected increase in
operating costs necessary to support the increased projected pilot
compensation. Table 15 shows this calculation.
Table 15--Projected Pilot Compensation, Multiplied by the Expense Multiplier Equals Projected Operating Expense
----------------------------------------------------------------------------------------------------------------
Projected target Multiplied by
Pilotage area pilot expense Projected
compensation multiplier operating expense
----------------------------------------------------------------------------------------------------------------
Area 1................................................. $1,612,431 x .33035 $532,661
Area 2................................................. 978,294 x .55939 547,246
--------------------------------------------------------
Total, District One................................ 2,590,725 x .41671 1,079,585
----------------------------------------------------------------------------------------------------------------
Area 4................................................. 782,635 x .65370 511,609
Area 5................................................. 1,612,431 x .49395 796,463
--------------------------------------------------------
Total, District Two................................ 2,395,066 x .54607 1,307,877
----------------------------------------------------------------------------------------------------------------
Area 6................................................. 1,565,271 x .52508 821,898
Area 7................................................. 1,074,954 x .36885 396,501
Area 8................................................. 1,369,612 x .46823 641,295
--------------------------------------------------------
Total, District Three.............................. 4,009,836 x .46918 1,881,322
----------------------------------------------------------------------------------------------------------------
Step 5: Adjust the result in Step 4, as required, for inflation or
deflation, and calculate projected total economic cost. Based on data
from the U.S. Department of Labor's Bureau of Labor Statistics, we have
multiplied the results in Step 4 by a 1.027 inflation factor,
reflecting an average inflation rate of 2.7% in ``Midwest Economy--
Consumer Prices'' between 2006 and 2007, the latest years for which
data are available. Table 16 shows this calculation and the projected
total economic cost.
Table 16--Projected Operating Expense, Adjusted for Inflation, and Added to Projected Target Pilot Compensation
Equals Projected Total Economic Cost
----------------------------------------------------------------------------------------------------------------
B. Increase,
A. Projected multiplied by C. Projected D. Projected
Pilotage area operating expense inflation factor target pilot total economic
(= A x 1.027) compensation cost (= B + C)
----------------------------------------------------------------------------------------------------------------
Area 1.............................. $532,661 $547,043 $1,612,431 $2,159,474
Area 2.............................. 547,246 562,021 978,294 1,540,315
---------------------------------------------------------------------------
Total, District One............. 1,079,585 1,108,734 2,590,725 3,699,790
----------------------------------------------------------------------------------------------------------------
Area 4.............................. 511,609 525,422 782,635 1,308,058
Area 5.............................. 796,463 817,967 1,612,431 2,430,398
---------------------------------------------------------------------------
Total, District Two............. 1,307,877 1,343,190 2,395,066 3,738,456
----------------------------------------------------------------------------------------------------------------
[[Page 18676]]
Area 6.............................. 821,898 844,090 1,565,271 2,409,360
Area 7.............................. 396,501 407,206 1,074,954 1,482,160
Area 8.............................. 641,295 658,610 1,369,612 2,028,221
---------------------------------------------------------------------------
Total, District Three........... 1,881,322 1,932,117 4,009,836 5,941,954
----------------------------------------------------------------------------------------------------------------
Step 6: Divide the result in Step 5 by projected bridge hours to
determine total unit costs. Table 17 shows this calculation.
Table 17--Prospective (Total) Unit Costs
----------------------------------------------------------------------------------------------------------------
Prospective
A. Projected B. Projected (total) unit
Pilotage area total economic 2009 bridge costs (A divided
cost hours by B)
----------------------------------------------------------------------------------------------------------------
Area 1.................................................... $2,159,474 5,661 $381.47
Area 2.................................................... 1,540,315 5,650 272.62
-----------------------------------------------------
Total, District One................................... 3,699,790 11,311 327.10
----------------------------------------------------------------------------------------------------------------
Area 4.................................................... 1,308,058 7,320 178.70
Area 5.................................................... 2,430,398 5,097 476.83
-----------------------------------------------------
Total, District Two................................... 3,738,456 12,417 301.08
----------------------------------------------------------------------------------------------------------------
Area 6.................................................... 2,409,360 13,406 179.72
Area 7.................................................... 1,482,160 3,259 454.79
Area 8.................................................... 2,028,221 11,630 174.40
-----------------------------------------------------
Total, District Three................................. 5,941,954 28,295 210.00
-----------------------------------------------------
Overall........................................... 13,380,200 52,023 257.19
----------------------------------------------------------------------------------------------------------------
Step 7: Divide prospective unit costs (total unit costs) in Step 6
by the base period unit costs in Step 1. Table 18 shows this
calculation, which expresses the percentage change between the total
unit costs and the base unit costs. The results, for each Area, are
identical with the percentage increases listed in Table 1.
Table 18--Percentage Change, Prospective vs. Base Period Unit Costs
----------------------------------------------------------------------------------------------------------------
C. Percentage
change from base
A. Prospective B. Base period (A divided by B;
Pilotage area unit costs unit costs result
expressed as
percentage)
----------------------------------------------------------------------------------------------------------------
Area 1.................................................... $381.47 $367.17 3.89
Area 2.................................................... 272.62 261.03 4.44
-----------------------------------------------------
Total, District One................................... 327.07 314.15 4.11
----------------------------------------------------------------------------------------------------------------
Area 4.................................................... 178.70 170.93 4.54
Area 5.................................................... 476.83 457.95 4.12
-----------------------------------------------------
Total, District Two................................... 301.06 288.75 4.26
----------------------------------------------------------------------------------------------------------------
Area 6.................................................... 179.72 160.26 12.14
Area 7.................................................... 454.79 369.54 23.07
Area 8.................................................... 174.40 170.68 2.18
-----------------------------------------------------
Total, District Three................................. 210.00 188.14 11.62
-----------------------------------------------------
Overall........................................... 257.19 235.08 9.41
----------------------------------------------------------------------------------------------------------------
[[Page 18677]]
Step 8: Adjust the base period rates by the percentage change in
unit costs in Step 7. Table 19 shows this calculation.
Table 19--Base Period Rates Adjusted by Percentage Change in Unit Costs *
----------------------------------------------------------------------------------------------------------------
D. Adjusted
B. Percentage C. Increase in rate (A + C,
Pilotage A. Base period change in unit base rate (A rounded to
rate costs x B%) nearest
dollar)
----------------------------------------------------------------------------------------------------------------
Area (Multiplying
factor)
----------------------------------------------------------------------------------------------------------------
Area 1........................................ .............. 3.89 (1.0389)
--Basic pilotage.......................... $14.94/km, ................ $0.58/km, $15.52/km,
$26.44/mi $1.04/mi $27.48/mi
--Each lock transited..................... 331.03 ................ 12.89 343.92
--Harbor movage........................... 1,083.89 ................ 42.20 1,126.09
--Minimum basic rate, St. Lawrence River.. 722.98 ................ 28.15 751.12
--Maximum rate, through trip.............. 3,173.51 ................ 123.55 3,297.07
Area 2........................................ .............. 4.44 (1.0444)
--6-hr. period............................ 780.23 ................ 34.66 814.89
--Docking or undocking.................... 744.24 ................ 33.06 777.30
Area 4........................................ .............. 4.54 (1.0454)
--6-hr. period............................ 688.35 ................ 31.28 719.63
--Docking or undocking.................... 530.49 ................ 24.11 554.60
--Any point on Niagara River below Black 1,354.15 ................ 61.53 1,415.68
Rock Lock................................
Area 5 between any point on or in............. .............. 4.12 (1.0412)
--Toledo or any point on Lake Erie W. of 1,243.75 ................ 51.28 1,295.03
Southeast Shoal..........................
--Toledo or any point on Lake Erie W. of 2,104.72 ................ 86.77 2,191.49
Southeast Shoal & Southeast Shoal........
--Toledo or any point on Lake Erie W. of 2,732.79 ................ 112.66 2,845.45
Southeast Shoal & Detroit River..........
--Toledo or any point on Lake Erie W. of 2,104.72 ................ 86.77 2,191.49
Southeast Shoal & Detroit Pilot Boat.....
--Port Huron Change Point & Southeast 3,665.60 ................ 151.12 3,816.72
Shoal (when pilots are not changed at the
Detroit Pilot Boat)......................
--Port Huron Change Point & Toledo or any 4,246.60 ................ 175.07 4,421.67
point on Lake Erie W. of Southeast Shoal
(when pilots are not changed at the
Detroit Pilot Boat)......................
--Port Huron Change Point & Detroit River. 2,753.85 ................ 113.53 2,867.38
--Port Huron Change Point & Detroit Pilot 2,141.88 ................ 88.30 2,230.18
Boat.....................................
--Port Huron Change Point & St. Clair 1,522.48 ................ 62.77 1,585.25
River....................................
--St. Clair River......................... 1,243.75 ................ 51.28 1,295.03
--St. Clair River & Southeast Shoal (when 3,665.60 ................ 151.12 3,816.72
pilots are not changed at the Detroit
Pilot Boat)..............................
--St. Clair River & Detroit River/Detroit 2,753.85 ................ 113.53 2,867.38
Pilot Boat...............................
--Detroit, Windsor, or Detroit River...... 1,243.75 ................ 51.28 1,295.03
--Detroit, Windsor, or Detroit River & 2,104.72 ................ 86.77 2,191.49
Southeast Shoal..........................
--Detroit, Windsor, or Detroit River & 2,732.79 ................ 112.66 2,845.45
Toledo or any point on Lake Erie W. of
Southeast Shoal..........................
--Detroit, Windsor, or Detroit River & St. 2,753.85 ................ 113.53 2,867.38
Clair River..............................
--Detroit Pilot Boat & Southeast Shoal.... 1,522.48 ................ 62.77 1,585.25
--Detroit Pilot Boat & Toledo or any point 2,104.72 ................ 86.77 2,191.49
on Lake Erie W. of Southeast Shoal.......
--Detroit Pilot Boat & St. Clair River.... 2,753.85 ................ 113.53 2,867.38
Area 6........................................ .............. 12.14 (1.1214)
--6-hr. period............................ 553.62 ................ 67.22 620.84
--Docking or undocking.................... 525.88 ................ 63.86 589.74
Area 7 between any point on or in............. .............. 23.07 (1.2307)
--Gros Cap & De Tour...................... 1,975.83 ................ 455.84 2,431.67
--Algoma Steel Corp. Wharf, Sault Ste. 1,975.83 ................ 455.84 2,431.67
Marie, Ont. & De Tour....................
--Algoma Steel Corp. Wharf, Sault Ste. 744.10 ................ 171.67 915.77
Marie, Ont. & Gros Cap...................
--Any point in Sault Ste. Marie, Ont., 1,656.11 ................ 382.08 2,038.19
except the Algoma Steel Corp. Wharf & De
Tour.....................................
--Any point in Sault Ste. Marie, Ont., 744.10 ................ 171.67 915.77
except the Algoma Steel Corp. Wharf &
Gros Cap.................................
--Sault Ste. Marie, MI & De Tour.......... 1,656.11 ................ 382.08 2,038.19
--Sault Ste. Marie, MI & Gros Cap......... 744.10 ................ 171.67 915.77
--Harbor movage........................... 744.10 ................ 171.67 915.77
Area 8........................................ .............. 2.18 (1.0218)
--6-hr. period............................ 535.92 ................ 11.67 547.59
[[Page 18678]]
--Docking or undocking.................... 509.36 ................ 11.09 520.45
----------------------------------------------------------------------------------------------------------------
* Rates for ``Cancellation, delay or interruption in rendering services (Sec. 401.420)'' and ``Basic Rates and
charges for carrying a U.S. pilot beyond the normal change point, or for boarding at other than the normal
boarding point (Sec. 401.428)'' are not reflected in this table but have been increased by 9.41% across all
areas.
V. Regulatory Analyses
We developed this proposed rule after considering numerous statutes
and executive orders related to rulemaking. Below, we summarize our
analyses based on 13 of these statutes or executive orders.
A. Regulatory Planning and Review
Executive Order 12866, ``Regulatory Planning and Review,'' 58 FR
51735, October 4, 1993, requires a determination whether a regulatory
action is ``significant'' and therefore subject to review by the Office
of Management and Budget (OMB) and subject to the requirements of the
Executive Order. This rulemaking is not significant under Executive
Order 12866 and will not be reviewed by OMB.
The Coast Guard is required to conduct an annual review of pilotage
rates on the Great Lakes and, if necessary, adjust these rates to align
compensation levels between Great Lakes pilots and industry. See the
``Background and Purpose'' section for a detailed explanation of the
legal authority and requirements for the Coast Guard to conduct an
annual review and provide possible adjustments of pilotage rates on the
Great Lakes. Based on our annual review for this rulemaking, we are
proposing an adjustment to the pilotage rates for the 2009 shipping
season to generate sufficient revenue to cover allowable expenses,
target pilot compensation, and returns on investment.
This proposed rule would implement a 9.41 percent overall rate
adjustment for the Great Lakes system over the current rate as adjusted
in the 2008 final rule. These adjustments to Great Lakes pilotage rates
meet the requirements set forth in 46 CFR part 404 for similar
compensation levels between Great Lakes pilots and industry. They also
include adjustments for inflation and changes in association expenses
to maintain these compensation levels.
In general, we expect an increase in pilotage rates for a certain
area to result in additional costs for shippers using pilotage services
in that area, while a decrease would result in a cost reduction or
savings for shippers in that area. This proposed rule would result in a
distributional effect that transfers payments (income) from affected
shippers (vessel owners and operators) to the Great Lakes' pilot
associations through Coast Guard regulated pilotage rates.
The shippers affected by these rate adjustments are those owners
and operators of domestic vessels operating on register (employed in
the foreign trade) and owners and operators of foreign vessels on a
route within the Great Lakes system. These owners and operators must
have pilots or pilotage service as required by 46 U.S.C. 9302. There is
no minimum tonnage limit or exemption for these vessels. However, the
Coast Guard issued a policy position several years ago stating that the
statute applies only to commercial vessels and not to recreational
vessels.
Owners and operators of other vessels that are not affected by this
proposed rule, such as recreational boats and vessels only operating
within the Great Lakes system, may elect to purchase pilotage services.
However, this election is voluntary and does not affect the Coast
Guard's calculation of the rate increase and is not a part of our
estimated national cost to shippers.
We reviewed a sample of pilot source forms, which are the forms
used to record pilotage transactions on vessels, and discovered very
few cases of U.S. Great Lakes vessels (i.e., domestic vessels without
registry operating only in the Great Lakes) that purchased pilotage
services. We found a case where the vessel operator purchased pilotage
service in District One to presumably leave the Great Lakes system. We
assume some vessel owners and operators may also choose to purchase
pilotage services if their vessels are carrying hazardous substances or
were navigating the Great Lakes system with inexperienced personnel.
Based on information from the Coast Guard Office of Great Lakes
Pilotage, we have determined that these vessels voluntarily chose to
use pilots and, therefore, are exempt from pilotage requirements.
We used 2006-2007 vessel arrival data from the Coast Guard's Marine
Inspection, Safety, and Law Enforcement (MISLE) system to estimate the
average annual number of vessels affected by the rate adjustment to be
208 vessels that journey into the Great Lakes system. These vessels
entered the Great Lakes by transiting through or in part of at least
one of the three pilotage Districts before leaving the Great Lakes
system. These vessels often make more than one distinct stop, docking,
loading, and unloading at facilities in Great Lakes ports. Of the total
trips for the 208 vessels, there were approximately 923 annual U.S.
port arrivals before the vessels left the Great Lakes system, based on
2006-2007 vessel data from MISLE.
The impact of the rate adjustment to shippers is estimated from the
district pilotage revenues. These revenues represent the direct and
indirect costs (``economic costs'') that shippers must pay for pilotage
services. The Coast Guard sets rates so that revenues equal the
estimated cost of pilotage.
We estimate the additional impact (costs or savings) of the rate
adjustment in this proposed rule to be the difference between the total
projected revenue needed to cover costs based on the 2008 rate
adjustment and the total projected revenue needed to cover costs in
this proposed rule for 2009. Table 20 details additional costs or
savings by area and district.
[[Page 18679]]
Table 20--Rate Adjustment and Additional Impact of Proposed Rule
[$U.S.; non-discounted] \1\
----------------------------------------------------------------------------------------------------------------
Additional
Projected Projected costs or
revenue in Proposed rate revenue in savings of
2008 change 2009 proposed rule
\2\
----------------------------------------------------------------------------------------------------------------
Area 1......................................... $2,078,551 1.0389 $2,159,474 $80,923
Area 2......................................... 1,474,806 1.0444 1,540,315 65,509
District 1..................................... 3,553,357 1.0412 3,699,790 146,433
Area 4......................................... 1,251,203 1.0454 1,308,058 56,855
Area 5......................................... 2,334,169 1.0412 2,430,398 96,229
District 2..................................... 3,585,372 1.0427 3,738,456 153,084
Area 6.......................................... 2,884,724 0.8352 2,409,360 \3\ (475,364)
Area 7......................................... 1,427,515 1.0383 1,482,160 54,645
Area 8......................................... 1,944,032 1.0433 2,028,221 84,189
District 3..................................... 6,256,273 0.9498 5,941,954 \3\ (314,319)
----------------------------------------------------------------------------------------------------------------
\1\ Some values may not total due to rounding.
\2\ Additional cost or savings of this rule = `Projected revenue in 2009' - `Projected Revenue in 2008'.
\3\ Area 6 incurs a substantial cost savings that results in a net cost savings for pilotage services in
District 3 and the system. The sum of the additional impacts from this rulemaking result in a net savings for
the system of about $15,000.
After applying the rate change in this proposed rule, the resulting
difference between the projected revenue in 2008 and the projected
revenue in 2009 is the annual impact to shippers from this proposed
rule. This figure will be equivalent to the total additional payments
or savings that shippers will incur for pilotage services from this
proposed rule. As discussed earlier, we consider a reduction in
payments to be a cost savings.
The impact of the rate adjustment in this proposed rule to shippers
varies by area and district. The annual costs of the rate adjustments
in Districts 1 and 2 are approximately $146,000 and $153,000,
respectively, while District 3 will experience an annual savings of
approximately $314,000. To calculate an exact cost or savings per
vessel is difficult because of the variation in vessel types, routes,
port arrivals, commodity carriage, time of season, conditions during
navigation, and preferences for the extent of pilotage services on
designated and undesignated portions of the Great Lakes system. Some
owners and operators will pay more and some will pay less depending on
the distance and port arrivals of their vessels' trips. However, the
annual cost or savings reported above does capture all of the
additional cost the shippers face as a result of the rate adjustment in
this proposed rule.
As Table 20 indicates, all areas will experience an increased
annual cost due to this proposed rate change except Area 6, which will
experience a savings. The projected savings for Area 6 is approximately
$475,000. This will cause a net savings for District 3, and is due to a
decrease in actual bridge hours in Area 6 from 2008 to 2009. This
decrease in bridge hours led to a decrease in the number of pilots
needed, from 10 pilots in 2008 to 8 pilots in 2009. This decrease in
the number of pilots would reduce the projected revenue needed to cover
costs of pilotage services in Area 6.
The effects of a rate adjustment on costs and savings vary by year
and area. A decrease in projected expenses for individual areas or
districts is common in past pilotage rate adjustments. Most recently,
in the 2008 Final Rule, District 2 experienced a decrease in projected
expenses due to an adjustment in bridge hours from the 2008 Interim
Rule, which led to a savings for that district. However, this savings
was not large enough to outweigh the costs to the other districts.
This proposed rate adjustment will result in a savings for District
3 that will outweigh the combined costs of Districts 1 and 2. We
measure the impact of this rulemaking by examining the changes in costs
to shippers for pilotage services. With savings in District 3 exceeding
the combined costs in Districts 1 and 2, the net impact of this
rulemaking would be a cost savings for pilotage services in the Great
Lakes system.
B. Small Entities
Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this proposed rule would have a significant economic
impact on a substantial number of small entities. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000 people.
We expect entities affected by the proposed rule would be
classified under the North American Industry Classification System
(NAICS) code subsector 483-Water Transportation, which includes one or
all of the following 6-digit NAICS codes for freight transportation:
483111-Deep Sea Freight Transportation, 483113-Coastal and Great Lakes
Freight Transportation, and 483211-Inland Water Freight Transportation.
According to the Small Business Administration's definition, a U.S.
company with these NAICS codes and employing less than 500 employees is
considered a small entity.
For the proposed rule, we reviewed recent company size and
ownership data from 2006-2007 Coast Guard MISLE data and business
revenue and size data provided by Reference USA and Dunn and
Bradstreet. We were able to gather revenue and size data or link the
entities to large shipping conglomerates for 22 of the 24 affected
entities in the United States. We found that large, mostly foreign-
owned, shipping conglomerates or their subsidiaries owned or operated
all vessels engaged in foreign trade on the Great Lakes. We assume that
new industry entrants will be comparable in ownership and size to these
shippers.
There are three U.S. entities affected by the proposed rule that
receive revenue from pilotage services. These are the three pilot
associations that provide and manage pilotage services within the Great
Lakes districts. Two of the associations operate as partnerships and
one operates as a corporation. These associations are classified with
the same NAICS industry classification and small entity size standards
described above, but they have far fewer than 500
[[Page 18680]]
employees: approximately 65 total employees combined. We expect no
adverse impact to these entities from this proposed rule since all
associations receive enough revenue to balance the projected expenses
associated with the projected number of bridge hours and pilots.
Therefore, the Coast Guard has determined that this proposed rule
would not have a significant economic impact on a substantial number of
small entities under 5 U.S.C. Sec. 605(b). If you think that your
business, organization, or governmental jurisdiction qualifies as a
small entity and that this proposed rule would have a significant
economic impact on it, please submit a comment to the Docket Management
Facility at the address under ADDRESSES. In your comment, explain why
you think it qualifies and how and to what degree this proposed rule
would economically affect it.
C. Assistance for Small Entities
Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we offer to assist small
entities in understanding the proposed rule so that they could better
evaluate its effects on them and participate in the rulemaking. If the
proposed rule would affect your small business, organization, or
governmental jurisdiction and you have questions concerning its
provisions or options for compliance, please call Mr. Woo Kim, Great
Lakes Pilotage Branch, (CG-54122), U.S. Coast Guard, telephone 202-372-
1538 or send him e-mail at [email protected]. Small businesses may
send comments on the actions of Federal employees who enforce, or
otherwise determine compliance with, Federal regulations to the Small
Business and Agriculture Regulatory Enforcement Ombudsman and the
Regional Small Business Regulatory Fairness Boards. The Ombudsman
evaluates these actions annually and rates each agency's responsiveness
to small business. If you wish to comment on actions by employees of
the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247).
D. Collection of Information
This proposed rule would call for no new collection of information
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). This
rule does not change the burden in the collection currently approved by
the Office of Management and Budget (OMB) under OMB Control Number
1625-0086, Great Lakes Pilotage Methodology.
E. Federalism
A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. We have analyzed this rule under
that Order and have determined that it does not have implications for
federalism because there are no similar State regulations, and the
States do not have the authority to regulate and adjust rates for
pilotage services in the Great Lakes system.
F. Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 or more in any
one year. Though this rule would not result in such expenditure, we do
discuss the effects of this rule elsewhere in this preamble.
G. Taking of Private Property
This rule would not affect a taking of private property or
otherwise have taking implications under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights.
H. Civil Justice Reform
This rule meets applicable standards in sections 3(a) and 3(b)(2)
of Executive Order 12988, Civil Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce burden.
I. Protection of Children
We have analyzed this rule under Executive Order 13045, Protection
of Children from Environmental Health Risks and Safety Risks. This rule
is not an economically significant rule and does not create an
environmental risk to health or risk to safety that may
disproportionately affect children.
J. Indian Tribal Governments
This rule does not have tribal implications under Executive Order
13175, Consultation and Coordination with Indian Tribal Governments,
because it does not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.
K. Energy Effects
We have analyzed this rule under Executive Order 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that order because it is not a ``significant
regulatory action'' under Executive Order 12866 and is not likely to
have a significant adverse effect on the supply, distribution, or use
of energy. The Administrator of the Office of Information and
Regulatory Affairs has not designated it as a significant energy
action. Therefore, it does not require a Statement of Energy Effects
under Executive Order 13211.
L. Technical Standards
The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) that are developed or adopted by voluntary consensus
standards bodies. This rule does not use technical standards.
Therefore, we did not consider the use of voluntary consensus
standards.
M. Environment
We have analyzed this proposed rule under Department of Homeland
Security Directive 0023.1 and Commandant Instruction M16475.lD, which
guide the Coast Guard in complying with the National Environmental
Policy Act of 1969 (NEPA)(42 U.S.C. 4321-4370f), and have made a
preliminary determination that this action is one of a category of
actions which do not individually or cumulatively have a significant
effect on the human environment, and that therefore the proposed rule
will be categorically excluded, under figure 2-1, paragraph (34)(a) of
the Instruction, from further environmental documentation. Paragraph
34(a) pertains to minor regulatory changes that are editorial or
procedural in nature. This rule adjusts rates in accordance with
applicable statutory and regulatory mandates. A preliminary
``Environmental Analysis Check List'' supporting this determination is
[[Page 18681]]
available in the docket where indicated under the ``Public
Participation and Request for Comments'' section of this preamble. We
seek any comments or information that may lead to discovery of a
significant environmental impact from this proposed rule.
List of Subjects in 46 CFR Part 401
Administrative practice and procedure, Great Lakes, Navigation
(water), Penalties, Reporting and recordkeeping requirements, Seamen.
For the reasons discussed in the preamble, the Coast Guard proposes
to amend 46 CFR Part 401 as follows:
PART 401--GREAT LAKES PILOTAGE REGULATIONS
1. The authority citation for part 401 continues to read as
follows:
Authority: 46 U.S.C. 2104(a), 6101, 7701, 8105, 9303, 9304;
Department of Homeland Security Delegation No. 0170.1; 46 CFR
401.105 also issued under the authority of 44 U.S.C. 3507.
2. In Sec. 401.405, revise paragraphs (a) and (b), including the
footnote to Table (a), to read as follows:
Sec. 401.405 Basic rates and charges on the St. Lawrence River and
Lake Ontario.
* * * * *
(a) Area 1 (Designated Waters):
------------------------------------------------------------------------
Service St. Lawrence River
------------------------------------------------------------------------
Basic Pilotage............................ $15.52 per Kilometer or
$27.48 per mile \1\
Each Lock Transited....................... $344 \1\
Harbor Movage............................. $1,126 \1\
------------------------------------------------------------------------
\1\ The minimum basic rate for assignment of a pilot in the St. Lawrence
River is $751, and the maximum basic rate for a through trip is
$3,298.
(b) Area 2 (Undesignated Waters):
------------------------------------------------------------------------
Service Lake Ontario
------------------------------------------------------------------------
Six-Hour Period......................................... $815
Docking or Undocking.................................... $777
------------------------------------------------------------------------
* * * * *
3. In Sec. 401.407 revise paragraphs (a) and (b), including the
footnote to Table (b), to read as follows:
Sec. 401.407 Basic rates and charges on Lake Erie and the navigable
waters from Southeast Shoal to Port Huron, MI.
* * * * *
(a) Area 4 (Undesignated Waters):
------------------------------------------------------------------------
Lake Erie (east of
Service southeast Shoal) Buffalo
------------------------------------------------------------------------
Six-Hour Period................. $720.............. $720
Docking or Undocking............ $555.............. $555
Any Point on the Niagara River N/A............... $1,416
below the Black Rock Lock.
------------------------------------------------------------------------
(b) Area 5 (Designated Waters):
----------------------------------------------------------------------------------------------------------------
Toledo or any
Point on Lake
Any point on or in Southeast Erie west of Detroit River Detroit pilot St. Clair
Shoal Southeast boat River
Shoal
----------------------------------------------------------------------------------------------------------------
Toledo or any port on Lake Erie $2,192 $1,295 $2,846 $2,192 N/A
west of Southeast Shoal........
Port Huron Change Point......... \1\ $3,817 \1\ $4,422 $2,868 $2,230 $1,586
St. Clair River................. \1\ $3,817 N/A $2,868 $2,868 $1,295
Detroit or Windsor or the $2,192 $2,846 $1,295 N/A $2,868
Detroit River..................
Detroit Pilot Boat.............. $1,585 $2,192 N/A N/A $2,868
----------------------------------------------------------------------------------------------------------------
\1\ When pilots are not changed at the Detroit Pilot Boat.
4. In Sec. 401.410, revise paragraphs (a), (b), and (c) to read as
follows:
Sec. 401.410 Basic rates and charges on Lakes Huron, Michigan, and
Superior, and the St Mary's River.
* * * * *
(a) Area 6 (Undesignated Waters):
------------------------------------------------------------------------
Lakes Huron
Service and Michigan
--------------------------------------------
Six-Hour Period............. $621
Docking or Undocking........ $590
------------------------------------------------------------------------
(b) Area 7 (Designated Waters):
----------------------------------------------------------------------------------------------------------------
Area De tour Gros cap Any harbor
----------------------------------------------------------------------------------------------------------------
Gros Cap........................................................ $2,432 N/A N/A
Algoma Steel Corporation Wharf at Sault Ste. Marie Ontario...... $2,432 $916 N/A
Any point in Sault Ste. Marie, Ontario, except the Algoma Steel $2,038 $916 N/A
Corporation Wharf..............................................
Sault Ste. Marie, MI............................................ $2,038 $916 N/A
Harbor Movage................................................... N/A N/A $916
----------------------------------------------------------------------------------------------------------------
(c) Area 8 (Undesignated Waters):
------------------------------------------------------------------------
Service Lake Superior
------------------------------------------------------------------------
Six-Hour Period......................................... $548
Docking or Undocking.................................... $521
------------------------------------------------------------------------
Sec. 401.420 [Amended]
5. In Sec. 401.420--
a. In paragraph (a), remove the number ``$102'' and add, in its
place, the number ``$112''; and remove the number ``$1,604'' and add,
in its place, the number ``$1,755''.
b. In paragraph (b), remove the number ``$102'' and add, in its
place, the number ``$112''; and remove the number ``$1,604'' and add,
in its place, the number ``$1,755''.
c. In paragraph (c)(1), remove the number ``$606'' and add, in its
place, the number ``$663''; in paragraph (c)(3), remove the number
``$102'' and add, in its place, the number ``$112''; and, also in
paragraph (c)(3), remove the number ``$1,604'' and add, in its place,
the number ``$1,755''.
Sec. 401.428 [Amended]
6. In Sec. 401.428, remove the number ``$618'' and add, in its
place, the number ``$676''.
[[Page 18682]]
Dated: April 21, 2009.
James A. Watson,
Rear Admiral, U.S. Coast Guard, Director of Prevention Policy.
[FR Doc. E9-9432 Filed 4-21-09; 4:15 pm]
BILLING CODE 4910-15-P