[Federal Register Volume 75, Number 17 (Wednesday, January 27, 2010)]
[Proposed Rules]
[Pages 4334-4335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-1589]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 388

[Docket No. MARAD 2010 0012]
RIN 2133-AB76


Administrative Waivers of the Coastwise Trade Laws: New 
Definition of Eligible Vessels

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Maritime Administration (MARAD, or we, our, or us) is 
publishing this proposed rule to change the definition of vessels 
eligible for a waiver of the coastwise laws under special provisions of 
the Coast Guard Authorization Act of 1998. Under this measure, and 
taking into account several factors, MARAD may waive the U.S.-build 
requirement allowing vessels to operate as small passenger vessels or 
uninspected passenger vessels authorized to carry no more than 12 
passengers for hire. The new definition of ``eligible vessel'' deletes 
the requirement that the vessel be five net tons or more. That 
requirement is not in the enabling statute and, therefore, does not 
need to be in the regulations.

DATES: Comments on the proposed rule are due March 29, 2010.

ADDRESSES: You may submit comments [identified by DOT DMS Docket Number 
MARAD-2010-0012] via any of the following methods:
    Web site/Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the online 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 a.m. and 5 p.m., 
Monday through Friday, except Federal holidays.
    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 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 a.m. and 5 p.m., Monday through 
Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Joann Spittle, Office of Cargo 
Preference and Domestic Trade, Maritime Administration, MAR-730, Room 
W21-203, 1200 New Jersey Avenue, SE., Washington, DC 20590. Telephone: 
202-366-5979 or 800-9US-FLAG; e-mail: [email protected].

SUPPLEMENTARY INFORMATION: Public Law 105-383, which authorized the 
Secretary of Transportation to grant waivers of the U.S.-build 
requirement for the smallest of passenger vessels (those carrying 12 or 
fewer passengers) to operate in the coastwise trade, contained a 
provision that the Secretary of [Homeland Security] may issue a 
certificate of documentation with an appropriate endorsement for 
employment in the coastwise trade as a small passenger vessel or an 
uninspected passenger vessel in the case of an eligible vessel 
authorized to carry no more than 12 passengers for hire if the 
Secretary of Transportation, after notice and an opportunity for public 
comment, determines that the employment of the vessel in the coastwise 
trade will not adversely affect--(1) United States vessel builders; or 
(2) the coastwise trade business of any person that employs vessels 
built in the United States in that business.
    Until now, the term ``eligible vessel'' was understood to mean a 
vessel eligible for U.S. Coast Guard documentation; therefore our 
regulation contained a five net ton minimum vessel size limit. However, 
under 46 U.S.C. 12102(b), a vessel of less than five net tons may 
engage in the coastwise trade without documentation, if the vessel 
otherwise satisfies the requirements to engage in the trade.
    An unintended consequence of the present small passenger waiver 
regulations is that the Maritime Administration is unable to grant 
waivers to vessels of less than five net tons, the owners of which may 
desire to operate them in coastwise trade. There is no indication that 
the statute intended this result, because the statute does not prohibit 
the granting of waivers to vessels of under five net tons. Accordingly, 
in this proposed rule, the Maritime Administration will be increasing 
the number of eligible vessels by removing the 5 net ton minimum 
requirement for its Small Passenger Vessel Waiver Program.

Rulemaking Analysis and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

    This proposed rule is not significant under section 3(f) of 
Executive Order 12866, and as a consequence, OMB did not review the 
rule. This proposed rulemaking is not significant under the Regulatory 
Policies and Procedures of the Department of Transportation (44 FR 
11034; February 26, 1979). The costs and benefits associated with this 
rulemaking are considered to be so minimal that no further regulatory 
impact analysis is necessary. Vessels eligible for a waiver of the 
coastwise trade laws will be limited to foreign built or foreign re-
built small passenger vessels and uninspected passenger vessels as 
defined by section 2101 of Title 46, United States Code. Additionally, 
vessels requested for consideration must be greater than three years 
old. We will not grant waivers in instances where such waivers will 
have an unduly adverse effect on U.S. vessel builders or U.S. 
businesses that use U.S. flag vessels. Under Title V, MARAD also has 
the authority to revoke coastwise endorsements under the limited 
circumstances in which a foreign-built or foreign-rebuilt passenger 
vessel, previously allowed into service, is deemed to have obtained 
such endorsement through fraud.

Executive Order 13132

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

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires MARAD to assess the impact 
that regulations will have on small

[[Page 4335]]

entities. After analysis of this proposed rule, MARAD certifies that 
this will not have a significant economic impact on a substantial 
number of small businesses. Although we expect many applicants for 
vessel waivers to be small businesses, we do not believe that the 
economic impact will be significant. This regulation allows MARAD to 
waive the U.S.-build and other requirements for eligible vessels and 
provides a small economic benefit to successful applicants. This 
regulation will only allow vessels to carry the statutory maximum of 12 
passengers. As a consequence, MARAD estimates that a vessel owner who 
receives a waiver may earn a few hundred dollars per year for localized 
operations (geographic restrictions apply) such as whale watching and 
personalized fishing expeditions. Also, the economic impact of this 
rule is limited because it precludes vessel owners from participating 
in other economic activities such as carrying cargo and commercial 
fishing.

Environmental Assessment

    This proposed rule would not significantly affect the environment 
because the small number and small size of vessels admitted to U.S. 
registry under this waiver program would have little or no effect on 
the environment. Accordingly, an Environmental Impact Statement is not 
required under the National Environmental Policy Act of 1969.

Paperwork Reduction Act

    The Office of Management and Budget (OMB) has reviewed and approved 
the information collection requirements under the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501, et seq.) The OMB approval number is 2133-
0529.

Unfunded Mandates Reform Act

    This proposed rule does not impose unfunded mandates under the 
Unfunded Mandates Reform Act of 1995. It does not result in costs of 
$141.3 million or more to either State, local, or tribal governments, 
in the aggregate, or to the private sector, and is the least burdensome 
alternative that achieves the objectives of the rule.

Consultation and Coordination with Indian Tribal Governments

    MARAD believes that regulations evolving from this proposed rule 
would have no significant or unique effect on the communities of Indian 
tribal governments when analyzed under the principles and criteria 
contained in Executive Order 3084 (Consultation and Coordination with 
Indian Tribal Governments). Therefore, the funding and consultation 
requirements of this Executive Order would not apply.

Regulation Identifier Number (RIN)

    A regulation identifier number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN number contained in the heading 
of this document can be used to cross-reference this action with the 
Unified Agenda.

Privacy Act

    Anyone is able to search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (Volume 65, Number 70; Pages 19477-78).

List of Subjects in 46 CFR Part 388

    Administrative practice and procedure, Maritime carriers, Passenger 
vessels, Reporting and recordkeeping requirements.

    Accordingly, the Maritime Administration proposes to amend part 
388, 46 CFR chapter II, subchapter J, as follows:

PART 388--ADMINISTRATIVE WAIVERS OF THE COASTWISE TRADE LAWS

    1. The authority citation for part 388 continues to read as 
follows:

    Authority:  46 App. U.S.C. 1114(b); Pub. L. 105-383, 112 Stat. 
3445 (46 U.S.C. 12121): 49 CFR 1.66.

    2. In Sec.  388.2, revise paragraph (c) to read as follows:


Sec.  388.2  Definitions.

* * * * *
    (c) Eligible Vessel means a vessel that--is either a small 
passenger vessel or an uninspected passenger vessel that--
    (1) Was not built in the United States and is at least 3 years of 
age; or
    (2) If rebuilt, was rebuilt outside the United States at least 3 
years before the certificate of documentation with appropriate 
endorsement if granted, would become effective.
* * * * *

    By Order of the Maritime Administrator
    Dated: January 21, 2010.
Christine Gurland,
Secretary, Maritime Administration.
[FR Doc. 2010-1589 Filed 1-26-10; 8:45 am]
BILLING CODE 4910-81-P