[Federal Register Volume 75, Number 97 (Thursday, May 20, 2010)]
[Rules and Regulations]
[Pages 28205-28206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-11927]


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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 for Eligible Vessel

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Final rule.

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SUMMARY: The Maritime Administration (MARAD) is changing the definition 
of ``eligible vessel'' to be considered for a waiver of the coastwise 
laws 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 
eligible vessel be five net tons or more. That requirement is not in 
the enabling statute and is preventing MARAD from considering waiver 
requests from small vessels. In addition, the mailing address of the 
agency needs to be updated to reflect the agency's present address.

DATES: This final rule will be effective June 21, 2010.
    Docket: For access to the docket to read background documents, go 
to http://www.regulations.gov at any time to view docket number 2010-
0012 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 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. It also authorized the 
Secretary of [Homeland Security] to 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 for eligible vessels 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, which applies to 
vessels of a minimum size of five net tons. 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 current small passenger waiver regulation is that 
the Maritime Administration is unable to grant waivers to owners of 
vessels of less than five net tons who want to operate in coastwise 
trade.
    On January 27, 2010, MARAD published a notice of proposed 
rulemaking providing for a public comment period of 60 days. No 
comments were received on this proposal. Accordingly, in this final 
rule, the Maritime Administration adopts the rule, as proposed. The 
rule extends the eligibility of vessels for its Small Vessel Waiver 
Program by removing the five net ton minimum requirement.
    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 where a foreign-
built or foreign-rebuilt passenger vessel, previously allowed into 
service, is deemed to have obtained such endorsement through fraud. In 
addition, the final rule changes the mailing address of the agency 
found at 46 CFR 388.3(a)(2) to reflect the agency's present address.

Rulemaking Analysis and Notices

Executive Order 12866 and DOT Regulatory Policies and Procedures

    This final rule is not significant under section 3(f) of Executive 
Order 12866, and as a consequence, OMB did not review the rule. This 
final rule 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.

Executive Order 1313

    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. This rule has no 
substantial

[[Page 28206]]

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, consultation with State and local 
officials was not necessary.

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires MARAD to assess the impact 
that regulations will have on small entities. After analysis of this 
final rule, I certify that this final rule will not have a significant 
economic impact on a substantial number of small entities. Although we 
expect many applicants for vessel waivers to be small businesses, we do 
not believe that the economic impact will be significant. This rule 
allows MARAD to waive the U.S.-build and other requirements for 
eligible vessels and provides a small economic benefit to 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 rule is not expected to have a significant effect on the human 
and natural environment, individually or cumulatively, and is 
categorically excluded from further documentation requirements under 
the National Environmental Policy Act (NEPA) by Maritime Administrative 
Order 600-1, Categorical Exclusion No. 3. In pertinent part, 
Categorical Exclusion No. 3 applies to: ``promulgation of rules, 
regulations, directives, and amendments thereto which do not require a 
regulatory impact analysis under section 3 of Executive Order 12291 or 
do not have a potential to cause a significant effect on the 
environment.''

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 final 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. Department 
guidance requires the use of a revised threshold figure of $141.3 
million, which is the value of $100 million in 2008 after adjusting for 
inflation.

Consultation and Coordination With Indian Tribal Governments

    MARAD believes that regulations evolving from this final 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 13084 (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

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

0
Accordingly, the Maritime Administration amends part 388, 46 CFR 
chapter II, subchapter J, to read as follows:

PART 388--ADMINISTRATIVE WAIVERS OF THE COASTWISE TRADE LAWS

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


0
1. 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.
* * * * *


0
2. In Sec.  388.3, revise the introductory paragraphs of paragraphs (a) 
and (a)(2) to read as follows:


Sec.  388.3  Application and fee.

    (a) An owner of a vessel may choose either of two methods to apply 
for an administrative waiver of the coastwise trade laws of the United 
States for an eligible vessel to carry no more than twelve passengers 
for hire.
* * * * *
    (2) Alternatively, applicants may send written applications to 
Small Passenger Vessel Waiver Applications, Office of Cargo Preference, 
MAR-730, 1200 New Jersey Ave., SE., Washington, DC 20590. Written 
applications need not be in any particular format, but must be signed, 
be accompanied by a check made out to the order of ``Maritime 
Administration,'' and contain the following information:
* * * * *

    By the order of the Maritime Administrator.

    Dated: May 10, 2010.
Christine Gurland,
Secretary, Maritime Administration.
[FR Doc. 2010-11927 Filed 5-19-10; 8:45 am]
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