[Federal Register Volume 85, Number 120 (Monday, June 22, 2020)]
[Notices]
[Pages 37453-37454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-13313]


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FEDERAL MARITIME COMMISSION

[Docket No. 20-10; Petition No. P1-20]


Investigation Into Conditions Created by Canadian Ballast Water 
Regulations in the U.S./Canada Great Lakes Trade

AGENCY: Federal Maritime Commission.

ACTION: Notice of investigation and request for comments.

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SUMMARY: The Federal Maritime Commission has initiated an investigation 
into the allegations made in a petition filed by the Lake Carriers' 
Association that conditions created by the Government of Canada are 
unfavorable to shipping in the United States/Canada trade.

DATES: Submit comments on or before July 22, 2020.

ADDRESSES: You may submit comments, identified by Docket No. 20-10, by 
the following method:
     Email: [email protected]. For comments, include in the 
subject line: ``Docket No. 20-10, Comments on Conditions Created by 
Canadian Ballast Water Regulations in the U.S./Canada Great Lakes 
Trade.'' Comments should be attached to the email as a Microsoft Word 
or text-searchable PDF document.
    Docket: For access to the docket to read background documents or 
public comments received, go to the Commission's Electronic Reading 
Room at: www2.fmc.gov/readingroom/proceeding/20-10/.
    Unless otherwise directed by the commenter, all comments will be 
treated as confidential under 46 U.S.C. 42105 and 46 CFR 550.104.

FOR FURTHER INFORMATION CONTACT: For questions regarding submitting 
comments or the treatment of confidential information, contact Rachel 
E. Dickon, Secretary; Phone: (202) 523-

[[Page 37454]]

5725; Email: [email protected]. For technical questions, contact: Peter 
J. King, Deputy Managing Director; Phone (202) 523-5800; Email: 
[email protected].

SUPPLEMENTARY INFORMATION: 

I. Introduction

    On March 6, 2020, the Lake Carriers' Association (Petitioner), a 
trade association made up of U.S. owners and operators of vessels 
serving the Great Lakes (Lakers), filed a petition alleging that 
conditions created by Transport Canada, an agency of the Government of 
Canada, are unfavorable to shipping in the United States/Canada trade, 
pursuant to Section 19(1)(b) of the Merchant Marine Act, 1920 (Section 
19) codified in 46 U.S.C. 42101. Section 19 authorizes the Federal 
Maritime Commission (Commission) to investigate these conditions and to 
adopt regulations to adjust or meet such conditions. In this instance, 
Petitioner requests that the Commission adopt regulations in order to 
remedy a condition it alleges will result in irreparable harm to 
Petitioner's members.

II. Summary of Petition

    Petitioner argues that Transport Canada's proposed regulations to 
require the installation of ballast water management systems (BWMS) on 
Laker vessels will effectively drive out U.S.-flag vessels from the 
cross-lakes U.S. export trade to Canada. These regulations, which were 
proposed by Transport Canada on June 8, 2019, would require Canadian 
vessels and vessels in waters under Canadian jurisdiction to develop 
and implement a ballast water management plan and comply with a 
performance standard that would limit the number of organisms 
discharged, with a compliance date of September 8, 2024. Ballast Water 
Regulations, Canada Gazette, Part 1, Vol. 153, No. 23 at 15.
    The proposed regulations would exempt vessels of a non-signatory 
party to the International Maritime Organization (IMO) International 
Convention on the Management of Ships' Ballast Water and Sediments, 
such as the United States, if those vessels operate exclusively within 
the Great Lakes Basin and do not load ballast water from or release 
ballast water into Canadian waters. Petitioner alleges that this 
exemption would not apply to its members' vessels because they need to 
load ballast water after offloading export cargo at Canadian ports, and 
that in order for its members' vessels to comply with the proposed 
regulations, they would need to install a BWMS on each vessel.
    Petitioner argues that because of the vessel type and age 
differences between the Canadian and U.S. fleets, the respective costs 
of implementing the proposed regulations will be very different. 
Transport Canada estimates the cost of implementing the requirements on 
all Canadian vessels currently serving the trade would be approximately 
632 million Canadian dollars. Petitioner argues that implementing these 
same regulations on all U.S. vessels currently serving the trade would 
cost nearly 1.132 billion Canadian dollars. Ultimately, Petitioner 
argues the proposed regulations will essentially double the U.S. Laker 
cost of participating in the trade while Canadian carriers would 
experience a less than 1 Canadian dollar per ton cost increase.
    Petitioner argues that its members cannot comply with the 
regulations because of the prohibitive cost, and they cannot avoid the 
regulations and continue to carry United States exports to Canada 
because they must load ballast water as they offload cargo at Canadian 
ports. Petitioner also states that its members cannot operate their 
vessels outside of the Great Lakes and St. Lawrence River because of 
their ship design and current U.S. Coast Guard certification is 
restricted to service on the Great Lakes and St. Lawrence River. Should 
the regulations be finalized and if U.S. vessels were thereby forced 
out of the trade, Petitioner contends that Canadian vessels would enjoy 
a monopoly on the cross-lakes U.S. export trade to Canada.
    Petitioner argues that prohibiting the loading of ballast water 
without a BWMS serves no environmental purpose because, unlike 
discharging ballast water, loading ballast water in Canadian waters 
does not result in the potential introduction of nonnative organisms 
into Canadian waters. Petitioner asserts that the regulations serve no 
environmental purpose and the cost of compliance is prohibitively high 
for U.S. vessels, and suggests that the real purpose of the regulations 
is to drive out U.S. vessels from this trade.
    Petitioner is asking the Commission to issue a regulation to meet 
the unfair competitive conditions created by Transport Canada. 
Petitioner has provided a proposed regulation that would assess a fee 
of 300,000.00 U.S. dollars each time a Canadian vessel enters any U.S. 
port.

III. Investigation and Initial Request for Comments

    The Commission has reviewed the Petition and determined that it 
meets the threshold requirements for consideration under the 
Commission's regulations. See 46 CFR part 550, subpart D. The 
Commission has therefore determined to initiate an investigation into 
whether the proposed Transport Canada regulations create unfavorable 
conditions to shipping in the foreign trade of the United States. To 
that end, the Commission has designated the Deputy Managing Director to 
lead an investigation into the Petitioner's allegations and to prepare 
a report on the investigation's findings and recommendations for 
Commission consideration.
    As an initial step in the investigation, interested persons are 
requested to submit views, arguments and/or data on the Petition. 
Comments may address any aspect of the Petition.
    As the Commission proceeds with this investigation, it may 
determine the need to request additional comment or gather information 
through other means as authorized under 46 U.S.C. 42104 and 46 CFR part 
550.

    By the Commission.
Rachel Dickon,
Secretary.
[FR Doc. 2020-13313 Filed 6-19-20; 8:45 am]
BILLING CODE 6730-02-P