[Federal Register Volume 88, Number 141 (Tuesday, July 25, 2023)]
[Notices]
[Pages 47942-47943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-15507]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration


Solicitation of Application for the Award of One Tanker Security 
Program Operating Agreement

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 one TSP operating agreement. 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 one vessel in the TSP.

DATES: Applications for enrollment must be received no later than 
August 14, 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 
SecDef during times of war or national emergency.

Application Criteria

    Section 53403(b)(2)(A) of title 46, United States Code, and MARAD's 
implementing regulation at 46 CFR 294.9, direct the Secretary in 
consultation with the SecDef to consider applicant vessel 
qualifications 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 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.
     Double-hulled and capable of carrying more than two 
separated grades of refined petroleum products with double valve 
protection between tanks.

National Security Requirements

    The applicant 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 to operate 
under the Operating Agreement. An applicant proposing a vessel 
registered under the laws of a foreign country at the time of 
application must demonstrate the vessel owner's intent to have the 
vessel documented under United States law and must demonstrate that the 
vessel is U.S. registered by the time the applicant enters into a TSP 
Operating Agreement for the vessel. Proof of U.S. Coast Guard vessel 
documentation and inspection and all relevant charter and management 
agreements for a chosen vessel must be approved by MARAD before the 
vessel will be eligible to operate under a TSP Operating Agreement and 
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

[[Page 47943]]

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. Further, in accordance with the FY22 NDAA, no vessel may 
operate under a TSP Operating Agreement while it is also operating 
under charter to the United States Government for a period that, 
together with options, exceeds 180 continuous days.

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 will make every effort to expedite the review of applications 
and an award of a TSP Operating Agreement. MARAD, however, does not 
guarantee the award of a TSP Operating Agreement 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.

(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. 2023-15507 Filed 7-24-23; 8:45 am]
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