[Federal Register Volume 87, Number 236 (Friday, December 9, 2022)]
[Notices]
[Pages 75688-75689]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-26848]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration


Tanker Security Program Application Solicitation

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Notice of application period for the Tanker Security Program 
(TSP).

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SUMMARY: The Maritime Administration (MARAD) requests applications from 
eligible candidates for possible participation in the Tanker Security 
Program (TSP). This request for applications is issued in accordance 
with certain provisions of the National Defense Authorization Act for 
Fiscal Year 2021 (FY21 NDAA) and the National Defense Authorization Act 
for Fiscal Year 2022 (FY22 NDAA). The FY21 NDAA authorized the 
Secretary of Transportation to establish a fleet of active, 
commercially viable, militarily useful, privately owned product tank 
vessels of the United States. The fleet will meet national defense and 
other security requirements and maintain a United States presence in 
international commercial shipping. The FY22 NDAA made minor adjustments 
related to the participation of long-term charters in the TSP. This 
request for applications provides, among other things, application 
criteria and a deadline for submitting applications for the enrollment 
of vessels in the TSP.

DATES: Applications for enrollment must be received no later than 
February 7, 2023. Applications should be submitted to the address 
listed in the ADDRESSES section below.

ADDRESSES: Applications may be submitted electronically to 
[email protected] or in hard copy to the Tanker Security Program, 
Maritime Administration, U.S. Department of Transportation, 1200 New 
Jersey Avenue SE, Washington, DC 20590. Application forms are available 
upon request or may be downloaded from MARAD's website.

FOR FURTHER INFORMATION CONTACT: David Hatcher, Director, Office of 
Sealift Support, Maritime Administration, Telephone (202) 366-0688. For 
legal questions, call Joseph Click, Office of Chief Counsel, Division 
of Maritime Programs, Maritime Administration, (202) 366-5882.

SUPPLEMENTARY INFORMATION: Section 53402(a) of title 46, United States 
Code, requires that the Secretary of Transportation (Secretary), in 
consultation with the Secretary of Defense (SecDef), establish a fleet 
of active, commercially viable, militarily useful, privately-owned 
product tank vessels to meet national defense and other security 
requirements. The TSP will provide a stipend to tanker operators of 
U.S.-flagged vessels that meet certain qualifications.
    Congress appropriated $60,000,000 for the TSP in the Consolidated 
Appropriations Act of 2022, Public Law 117-269, to remain available 
until expended. Authorized payments to participating operators are 
limited to $6 million per ship, per fiscal year and are subject to 
annual appropriations. Participating operators will be required to make 
their commercial transportation resources available upon request of the

[[Page 75689]]

SecDef during times of war or national emergency.

Application Criteria

    Section 53403(b)(2)(A) of Title 46, United States Code directs the 
Secretary in consultation with the SecDef to consider applicant vessel 
qualifications as they relate to 46 CFR 294.9 and give priority to 
applications based on the following criteria:
    (1) Vessel capabilities, as established by SecDef;
    (2) Applicant's record of vessel ownership and operation of tanker 
vessels; and
    (3) Applicant's citizenship, with preference for Section 50501 
Citizens.

Vessel Requirements

    Acceptable vessels for a TSP Operating Agreement must meet the 
requirements of 46 U.S.C. 53402(b) and 46 CFR 294.9. The Commander, 
USTRANSCOM, has provided vessel suitability standards for eligible TSP 
vessels for use during the application selection process. The following 
suitability standards, consistent with the requirements of 46 U.S.C. 
53402(b)(5), will apply to vessel applications:
     Medium Range (MR) tankers between 30,000-60,000 deadweight 
tons, with fuel cargo capacity of 230,000 barrels or greater.
     Deck space and size to accept installation of 
Consolidation (CONSOL) stations, two on each side for a total of four 
stations.
     Ability to accommodate up to an additional 12 crew for 
CONSOL, security, and communication crew augmentation.
     Communication facilities capable of integrating secure 
communications equipment.
     Does not engage in commerce or acquire any supplies or 
services if any proclamation, Executive order, or statute administered 
by Office of Foreign Assets Control (OFAC), or if OFAC's implementing 
regulations at 31 CFR Chapter V, would prohibit such a transaction by a 
person subject to the jurisdiction of the United States, except as 
authorized by the OFAC in the Department of the Treasury.
     Operate in the Indo-Pacific region.
     Maximum draft of no more than 44 feet. Preference will be 
given to vessels that can transport the most fuel at the shallowest 
draft.
     Sustained service speed of at least 14 knots, with higher 
speeds preferred.
     Carry only clean refined products.
     Capable of carrying more than two separated grades of 
refined petroleum products with double valve protection between tanks. 
Additionally, the vessel must meet the standards of 46 U.S.C. 53401(4).

National Security Requirements

    The applicants chosen to receive a TSP Operating Agreement will be 
required to enter into an Emergency Preparedness Agreement (EPA) under 
46 U.S.C. 53407, or such other agreement as may be approved by the 
Secretaries. The current EPA approved by the Secretary and SecDef is 
the Voluntary Tanker Agreement (VTA), publicly available for review at 
87 FR 67119 (November 7, 2022).

Documentation

    A vessel chosen to receive the TSP Operating Agreement, must be 
documented as a U.S.-flag vessel under 46 U.S.C., chapter 121. An 
applicant proposing a foreign-flag vessel must demonstrate the vessel 
owner's intent to have the vessel so documented and must demonstrate 
that the vessel is so documented by the time the applicant enters into 
a TSP Operating Agreement for the vessel. Proof of U.S. Coast Guard 
vessel documentation and all relevant charter and management agreements 
for a chosen vessel must be approved by MARAD before the vessel will be 
eligible to receive TSP payments.

Vessel Operation

    A vessel selected for award of a TSP Operating Agreement must be 
operated in foreign commerce, in mixed foreign commerce and domestic 
trade of the United States permitted under a registry endorsement 
issued under 46 U.S.C. 12111, or between U.S. ports and those points 
identified in 46 U.S.C. 55101(b), or in foreign-to-foreign commerce, 
and must not otherwise operate in the coastwise trade of the United 
States.

Protection of Confidential Commercial or Financial Information

    If the application includes information that the applicant 
considers to be a trade secret or confidential commercial or financial 
information, the applicant should do the following: (1) Note on the 
front cover that the submission ``Contains Confidential Commercial or 
Financial Information (CCFI)''; (2) mark each affected page ``CCFI''; 
and (3) highlight or otherwise denote the CCFI portions. MARAD will 
protect such information from disclosure to the extent allowed under 
applicable law. In the event MARAD receives a Freedom of Information 
Act (FOIA) request for the information, procedures described in the 
Department's FOIA regulation at 49 CFR 7.29 will be followed. Only 
information that is ultimately determined to be confidential under that 
procedure will be exempt from disclosure under FOIA.

Award of Operating Agreements

    MARAD does not guarantee the award of TSP Operating Agreements in 
response to applications submitted under this Notice. In the event that 
no awards are made, or an application is not selected for an award, the 
applicant will be provided with a written reason why the application 
was denied, consistent with the requirements of 46 U.S.C. 53403.

(Authority: 46 U.S.C. chapter 534, 49 CFR 1.92 and 1.93, 46 CFR 
294.)

    By order of the Maritime Administrator.
T. Mitchell Hudson, Jr.
Secretary, Maritime Administration.
[FR Doc. 2022-26848 Filed 12-8-22; 8:45 am]
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